Environmental Finance's Sustainable Debt Awards 2024

Sustainability-linked loan of the year - corporate (APAC): AirTrunk

Data centre operator AirTrunk Singapore closed an AUD4.62 billion ($3.02 billion) sustainability-linked loan (SLL) that combines carbon, energy and water usage effectiveness as key performance indicators (KPIs) for the loan.

The multi tranche SLL is split into six loans, three delayed draw term loans and two multi-currency revolving credit facilities.

It is a benchmark SLL for AirTrunk and, in addition to the green KPIs, it also includes two social KPIs: one on gender pay equity and another on gender representation, as well as incentives to fund social impact programmes across the Asia Pacific and Japan region. It is also in alignment with AirTrunk's Net Zero by 2030 strategy.

AirTrunk plans to invest in social impact initiatives in the following focus areas; equal digital access, science, technology, engineering and mathematics (STEM) Education, biodiversity and conservation, and innovation and research and development.

Mitsubishi UFJ Financial Group (MUFG), DBS Bank, ING Bank, Morgan Stanley were the lead arrangers, bookrunners and underwriters, along with Credit Agricole, Deutsche Bank and HSBC who were also the sustainability coordinators. The lenders supported AirTrunk in more than doubling the original loan size from AUD2.1 billion to AUD4.62 billion.

The SLL syndicate comprised more than 30 lenders, including the seven mandated lead arrangers, book runners and underwriters. Of those, 20 are first-time lenders including non-bank lenders and asset managers such as BlackRock, Aware Super, Clifford Capital, Fukoku Mutual Life, Hong Kong Mortgage Corporation and Revolution Asset Management.