DBS, OCBC, and UOB have joined forces to support a landmark S$5b sustainability-linked loan for the acquisition of ST Telemedia Global Data Centres (STT GDC) by KKR and Singtel. This financing highlights the banks’ confidence in the growth potential of digital infrastructure, driven by increasing global demand for cloud computing, artificial intelligence (AI), and data storage.
The loan, which involves DBS, OCBC, and UOB as Mandated Lead Arrangers, Bookrunners, and Sustainability-Linked Loan Coordinators, incorporates sustainability performance indicators. These include increasing renewable energy usage and expanding green data centres, aligning with STT GDC’s environmental goals.
STT GDC, headquartered in Singapore, is a rapidly growing data centre operator with a presence in 20 major markets across Asia Pacific, the UK, and Europe. The company is positioned to meet the rising demand for AI and cloud computing services.
Amit Sinha from DBS noted the importance of balancing infrastructure expansion with sustainability, stating, “The sustainability-linked structure aligns the growth of critical digital infrastructure with the transition to a lower-carbon digital economy.” Elaine Lam from OCBC emphasised the transaction’s role in advancing STT GDC’s global expansion and sustainability goals. Edmund Leong from UOB highlighted the critical role of data centres in Asia’s digital economy and the potential of sustainable financing to support economic and environmental objectives.
This collaboration underscores the banks’ commitment to fostering sustainable growth in the digital infrastructure sector, with implications for future developments in the region’s digital economy.
