Singapore-based data center platform DayOne Data Centers Ltd has been discussing with banks for weeks about a potential US$500 million bond offering which could go to the market as early as next year, Bloomberg reports quoting people familiar with the matter.
The people added the bond offerring which is arranged by Citigroup Inc is to finance projects but did not specify which particular projects. If successful, this would be one of the first data center bond offerrings in Asia Pacific.
This is despite one of its project partners, Nvidia Corp-backed Firmus Grid Ltd, abandoning an initial public offering in Australia last week. This would have been one of Australia’s largest IPOs and the proceeds would have funded purchases of graphics processing units (GPUs) for its planned first data center project in Batam, Indonesia, as part of an eight-year partnership with Nvidia. DayOne would have been the co-developer of the data center.
Last week, DayOne had filed for a US IPO for a potential US$5 billion raise as the firm ramps up fundraising to meet insatiable demand for artificial intelligence (AI) infrastructure.
DayOne had earlier closed half of a US$7 billion-equivalent loan supported by more than 30 lenders. The firm is also seeking a HK$1.86 billion (US$237 million) loan for a Hong Kong data center. In August, DayOne secured a four-year S$530 million (US$414 million) to develop its first data center in Singapore.
DayOne features footprint in Indonesia, Singapore, Malaysia, Japan, Hong Kong, Thailand and Finland.
Representatives for DayOne and Citigroup declined to comment when requested.