GDS Holdings Ltd, a Chinese data center developer and operator, is seeking a US$ 3.4 billion-equivalent loan for its data center operations in Johor, Malaysia. If approved, it would be among the largest financings for the sector by any borrower in Asia, as well as being GDS’ largest ever loan. In a report by Bloomberg News, citing sources familiar with the matter, the company’s international arm, Day One, formerly known as GDS International, is aiming for a five-year facility, comprising a US$ 1.7 billion tranche and a 7.5 billion ringgit (US$ 1.7 billion) piece to be used for refinancing and capital expenditure purposes.
The loan is being syndicated to the broader market while seven lenders have been appointed as mandated lead arrangers and bookrunners of the loan, including DBS Group Holdings Ltd., Malayan Banking Bhd. and Standard Chartered Plc.
GDS Holdings is also seeking to list DayOne by this year, Bloomberg News reported last month. The last time DayOne tapped the loan markets was in December 2023 when it raised a RM 1.27 billion syndicated green facility for expansion of its campus in Johor. DayOne first set foot in Johor in 2021 and by 2023 had launched its first facility there.
Johor currently has about 30 projects completed or under construction, plus 20 more pending approvals. Investors include Microsoft Corp. and ByteDance Ltd.
DayOne has data centers spread over Asia including Singapore, Malaysia, Indonesia, Thailand, Hong Kong and Japan.