Vantage Secures $820 Million in Landmark European Data Center ABS Deal
Vantage Data Centers has successfully raised $820 million (720 million euros) through an asset-backed securitization (ABS) deal, a first-of-its-kind for euro-denominated data center assets in Europe. The deal involves four data centers in Germany, specifically two in Berlin and two in Frankfurt, boasting access to approximately 55 megawatts of power. These facilities are fully leased to hyperscale clients.
Key Details of the Funding
The funds, secured at an average coupon rate of 4.3%, will be used to refinance existing construction loans. According to Vantage's CFO, Sharif Metwalli, the ABS market is well-suited for real estate-centric assets with high-credit quality tenants and long-term leases.
Despite high leverage, investor demand significantly exceeded the amount raised, leading to tighter pricing during the marketing process, according to Rich Cosgray, SVP of Global Capital Markets at Vantage Data Centers.
Expansion and Previous Success
The four German data centers, valued at over $1 billion earlier in the year, build on Vantage's previous success in the EMEA region. Last year, the company raised £600 million via securitization of its Cardiff campus. Across the EMEA region, Vantage has 2,500 MW of data center capacity operational or under development.
Barclays Bank and Deutsche Bank led the transaction, with Clifford Chance providing legal counsel to Vantage.