Equinix Prices $1.2B in Green Bonds

April 12, 2022

Equinix priced $1.2 billion principal amount of 3.90% senior green notes due 2032 (the "green bonds") in its fourth green bond offering. The green bonds will be used to help advance the company's longstanding commitment to sustainability leadership and reducing its environmental impact. The offering is expected to close on April 5, 2022, subject to the satisfaction of customary closing conditions.

Equinix used treasury locks to hedge a significant portion of interest rate risk associated with the issuance of the green bonds. Such hedges resulted in a cash gain of $58.4 million, which will be reported ratably over the term of the debt, reducing the effective coupon on the bonds to 3.35%.

With this latest offer, Equinix will have approximately $4.9 billion of green bonds issued, making it the fourth largest global issuer in the investment grade green bond market.

Equinix intends to allocate an amount equal to the net proceeds from the green bonds to finance or refinance, in whole or in part, recently completed or future Eligible Green Projects. This includes disbursements covering project expenditures for up to two years preceding the issuance date of the green bonds and until and including the maturity date of the green bonds, including the development and redevelopment of such projects. Eligible Green Projects include categories such as green buildings, renewable energy, energy efficiency, sustainable water and wastewater management, waste management and clean transportation.

Keith Taylor, Chief Financial Officer, Equinix said, "We are proud that Equinix is now the fourth largest issuer of green bonds globally. With the capital generated from this financing, we will continue to strengthen our longstanding environmental commitments while aligning our sustainability strategy with our capital needs."

Highlights/Key Facts

Equinix has developed a Green Finance Framework based on the Green Bond Principles and Green Loan Principles, a set of guidelines that promote transparency and integrity in, and advance the standardization of, green debt disclosures. The Framework increases Equinix's focus on protecting the environment and addressing global climate change through greenhouse gas emissions reductions, increasing resource efficiency and driving corporate transparency and accountability.

Use of proceeds from previous green bonds issued by Equinix have been allocated toward initiaitives that include:
Launched earlier this year, Equinix's Co-Innovation Facility (CIF) in Ashburn, VA provides a platform for trialing and showcasing advanced power, cooling and control methodologies—such as fuel cells and liquid cooling—for use in its future data centers. The facility–located in Equinix's DC15 International Business Exchange™ (IBX®) data center–allows the company to work with key innovative suppliers to develop prototype approaches and is unique in the data center industry.

In February, Equinix opened a new IBX data center—MU4—located in Aschheim near Munich, Germany. Like other new Equinix builds in Germany, MU4 features a green façade and partially planted roof. The greenery acts as additional natural insulation and cooling, also ensuring the building blends into the cityscape. The next construction phase of the data center will see the installation of an Aquifer Thermal Energy Storage (ATES) system which enables thermal energy to be stored and recovered, and will help further optimize cooling efficiency, reducing the site's overall carbon footprint. The data center is be powered by 100% renewable energy—purchased through a green power certificate from local supplier, Mainova. In addition to these measures, Equinix is also exploring options to provide waste heat from the MU4 data center to external consumers in the future.

Last year, Equinix became the first in the data center industry to commit to globally reaching climate-neutral by 2030, backed by science-based targets and an aggressive sustainability innovation agenda. Aligned with the Paris Climate Agreement, this is a critical step to ensure that Equinix continues to advance investments and innovations to reduce greenhouse gas emissions and keep global warming to 1.5 degrees Celsius.

Equinix's approved emissions reduction target by the Science Based Target initiative (SBTi) builds on the company's strong track record of sustainable growth and innovation, including achieving over 90% renewable energy coverage for its data centers since 2018.

Equinix has maintained an A- score for its CDP Climate Change Survey since FY20, a leading environmental rating system focused on climate-related transparency and action, recognizing the company's transparency and performance around addressing climate risks. Equinix has also been recognized by the U.S. EPA every year since 2015 on its list of Top 100 Green Power Partners, which recognizes corporate contributions to helping advance the development of the nation's green power market, and Equinix's commitment to reach 100% clean and renewable energy across its portfolio.

Equinix continues to advance its green initiatives through its participation in the Climate Neutral Data Centre Operator Pact and Self-Regulatory Initiative. The Pact marks the first time the data center industry has come together to solidify its commitment to ensure that European data centers are carbon neutral by 2030, among other environmental priorities.