Summary
- EcoDataCenter will redeem the remaining 2024 bonds on 15 October at 101.425% of nominal value plus accrued interest.
- SEK142.5m had already been repurchased and another SEK308.75m was validly tendered.
- The company recently issued SEK1bn of new four-year green bonds at three-month STIBOR plus 5%.
EcoDataCenter will redeem the remainder of its 2024 senior unsecured bond issue on 15 October after completing a refinancing programme built around SEK1 billion of new green debt.
The Swedish data centre operator said the outstanding bonds will be redeemed at 101.425% of nominal value plus accrued and unpaid interest through the redemption date.
SEK142.5 million of the original issue had already been repurchased by the company. Bondholders tendered a further SEK308.75 million under a process whose results were announced on 2 October, with those securities due to be cancelled before the remaining balance is redeemed.
Holders registered through Euroclear Nordics on the 8 October record date will receive the redemption payment. The old bonds will then be delisted from Nasdaq Stockholm’s corporate bond list.
New debt extends the financing structure
EcoDataCenter issued SEK1 billion of new senior unsecured green bonds on 1 October under a framework allowing up to SEK2 billion. The bonds have a four-year tenor and pay three-month STIBOR plus a five-percentage-point margin.
The floating structure means the company’s interest cost will move with STIBOR rather than remaining fixed for the life of the bond. The five-percentage-point margin is added to that benchmark throughout the term.
Proceeds are to be used in accordance with EcoDataCenter’s green bond framework, including refinancing and eligible green investment. The company plans to list the bonds on Nasdaq Stockholm’s sustainable bond list within 12 months and has also set shorter targets for admission to Nasdaq Transfer Market.
Refinancing is particularly relevant to data centre operators because significant capital is committed before a new facility produces mature revenue. Land, substations, data halls, cooling equipment and standby power systems can all require financing well ahead of full customer occupancy.
Debt maturity therefore interacts with the construction programme. Borrowing that comes due while a project is still absorbing capital can force refinancing at a difficult point in the development cycle, while longer dated funding can give a company more time to move sites into operation.
EcoDataCenter is expanding its Swedish physical estate alongside the refinancing. The company has secured a 52-hectare site in Smedjebacken for another campus with an initial 150MW development opportunity.
That project remains distinct from the bond transaction, but it illustrates the type of capital demand facing the business. A large power position only becomes revenue-producing capacity after grid infrastructure, buildings and customer deployments have been funded and delivered.
The green designation sets conditions around the use and reporting of bond proceeds rather than changing the engineering performance of a data centre by itself. The practical effect depends on which qualifying assets ultimately receive the capital.
Redeeming the 2024 bonds also avoids leaving a relatively small residual issue in the market after the tender and prior repurchases. Investors who did not tender will instead receive the contractual early redemption payment.
Once completed, the process will replace the previous issue with a new four-year instrument and remove the old bonds from the company’s capital structure. EcoDataCenter’s subsequent investment programme will determine how much of the new financing is converted into operating infrastructure.
