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Singtel clinches S$535M green loan for data centers

Singtel obtains its first green loan valued at S$535 million (US$401 million) to refinance the borrowings and support the operations of its two data centers – DC West and DC Kim Chuan – in Singapore.

Gigi Onag

December 4, 2023

2 Min Read
Singtel headquarters in Singapore
Singtel obtains a S$535 million green loan – its first – for its data centers in Singapore.(Source: Singtel)

Singtel has secured its first green loan amounting to S$535 million (US$401 million), which will be used to refinance the borrowings and support the operations of its two data centers – DC West and DC Kim Chuan – in Singapore.

The five-year green loan is provided by DBS, OCBC, Standard Chartered Bank and UOB, which have also been appointed as green loan coordinators.

In a statement issued today, the telco operator said the two data centers must maintain at least a Green Mark GoldPlus certification from Singapore's Building and Construction Authority as part of the green loan criteria.

Both DC West and DC Kim Chuan have already attained the highest green building certification, Green Mark Platinum.

"Singtel is committed to aligning our borrowings with our environmental objectives, and we are pleased to work with DBS, OCBC, Standard Chartered Bank and UOB to invest in a more sustainable future for everyone," said Arthur Lang, chief financial officer at Singtel Group.

Going green

Lang said Singtel is keen to expand its green financing initiatives

"We will build on the success of our sustainability-linked loans, bonds and other efforts, to further expand our portfolio of green financing initiatives under Olives, Singtel Group’s sustainable financing programme," he said.

Related:Singtel sells 20% of its data center arm to fund expansion in Southeast Asia

Singtel operates the largest and most advanced data centers in the Lion City. In addition to DC Kim Chuan and DC West, which offer a combined 62MW of capacity, the telco operator recently broke ground on its new hyper-connected 58MW green data center, DC Tuas, in the city.

"We will also continue exploring ways to incorporate technologies such as liquid cooling and AI to further improve the efficiency of all our data centers, including our upcoming DC Tuas," said Lang.

In September, global investment firm KKR agreed to acquire a 20% stake in Singtel's regional data center business in a deal worth up to S$1.1 billion ($807 million). The investment puts the enterprise value of Singtel's overall regional data center business at S$5.5 billion ($4 billion).

Singtel has partnered Telkom and Medco Power in Indonesia and GULF and AIS in Thailand to develop data centers in Batam and Bangkok respectively. Singtel's data center portfolio will offer a total combined capacity of over 155MW once the upcoming sites are operational in 2025, with room to scale up to more than 200MW.

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About the Author(s)

Gigi Onag

Senior Editor, APAC, Light Reading

Gigi Onag is Senior Editor, APAC, Light Reading. She has been a technology journalist for more than 15 years, covering various aspects of enterprise IT across Asia Pacific.

She started with regional IT publications under CMP Asia (now Informa), including Asia Computer Weekly, Intelligent Enterprise Asia and Network Computing Asia and Teledotcom Asia. This was followed by stints with Computerworld Hong Kong and sister publications FutureIoT and FutureCIO. She had contributed articles to South China Morning Post, TechTarget and PC Market among others.

She interspersed her career as a technology editor with a brief sojourn into public relations before returning to journalism joining the editorial team of Mix Magazine, a MICE publication and its sister publication Business Traveller Asia Pacific.

Gigi is based in Hong Kong and is keen to delve deeper into the region’s wide wild world of telecoms.

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