Yondr Group, a hyperscale data center developer, owner and operator has raised £532 million (US$ 670 million) through its first public capital market transaction after pricing securitised term notes backed by data center assets. The issuance also marks the company’s first bond transaction under its Green Finance Framework.
According to a company press release, the term notes will be used to refinance part of Yondr’s campus in Slough, one of Europe’s major data center clusters near London. The campus has a total design capacity above 100MW and consists of three facilities. Two of the buildings are already fully operational and together provide more than 60MW of computing capacity. The ABS financing is backed by the first two buildings on the site.
The deal was structured as asset-backed securities (ABS) financing, a method of raising capital by issuing debt secured by revenue streams or cash flows generated by specific assets. In this case, investors are exposed to the performance of selected data center buildings, while the structure allows the company to access funding linked directly to operational infrastructure rather than issuing traditional unsecured corporate debt.
Sandip Mahajan, Chief Financial Officer, Yondr, said, “Securing our first ABS financing marks a major milestone in diversifying Yondr’s capital strategy and reflects the strength of our asset base and capability of our team.” He continues, “This transaction reinforces our commitment to supporting the continued build-out of Europe’s digital infrastructure. As we scale our portfolio, it is essential that our approach to financing continues to evolve in both its structuring and its alignment with our environmental ambitions.”
Both operational data centers have maintained strong service-level performance and reliability standards for mission-critical workloads, according to the company. Construction continues on a third building, which is expected to become operational later this year and expand the campus’ capacity footprint in the region.
The transaction received a green bond designation following a second-party opinion from Morningstar Sustainalytics. The assessment confirmed alignment with the Green Bond Principles 2025 and Green Loan Principles 2025.
Through its green financing programme, Yondr has set targets including achieving net zero Scope 1 and Scope 2 emissions by 2030, lowering water intensity while improving cooling efficiency, supporting community impact initiatives at all operational sites, and maintaining transparent reporting on the use and environmental impact of financing proceeds.
Legal advisory support was provided by Linklaters LLP as issuer counsel and Latham and Watkins as underwriters counsel. The structuring of the transaction was led by Barclays, which acted as sole structuring advisor and sole green structuring coordinator. Goldman Sachs served alongside Barclays as joint lead manager and joint bookrunner. Co-managers on the transaction included ABN AMRO, Deutsche Bank, Nomura and Société Générale.
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