Singapore-based data center operator DayOne Data Centers’ largest shareholder, asset manager Hillhouse Investment is in discussions with banks for a loan of about US$ 600 million to fund its investment in DayOne, according to a report citing people familiar with the matter.
Part of the loan would be utilised towards refinancing debt raised by Hillhouse in a previous DayOne investment. In early June, Hillhouse and Coatue Management, two of the biggest shareholders in DayOne, closed a Series C investment round at US$ 4.5 billion. This raised Hillhouse’s stake to 19 per cent on a non-diluted basis, from 18 per cent after Series A financing in 2024. Series C was to enable DayOne to accelerate its expansion in key markets including Singapore, Malaysia, Indonesia, Thailand, Japan, Hong Kong, Finland, and Spain.
The proposed three-year loan could carry an interest margin of 500 basis points over the benchmark US Secured Overnight Financing Rate, the people added. The loan may also contain a greenshoe option which would enable Hillhouse to increase the size of the original loan.
Talks are still in early stages and the terms of the financing could change, the people said.
At the same time, DayOne is said to be in talks with banks to increase the amount of an existing loan to as much as US$ 7 billion for its Malaysian operations.
Hillhouse did not respond to a request for comment, while DayOne declined to comment.