Landmark green loan for AirTrunk SGP2 data centre
Explore how we helped AirTrunk secure a SGD2.25 billion green loan for SGP2 data centre in Singapore, enhancing regional digital infrastructure.
How we supported AirTrunk
We played a pivotal role in supporting our client, AirTrunk, to secure a landmark SGD2.25 billion green loan for the development of AirTrunk SGP2, a new hyperscale data centre in Singapore. This facility is set to deliver more than 70 megawatts (MW) of electricity capacity, reinforcing the region’s digital infrastructure.
Background
Founded in 2015, AirTrunk is a specialist in hyperscale data centres, providing a platform for cloud, content, and large enterprise customers throughout the Asia-Pacific & Middle East (APME) region. AirTrunk is renowned for developing and operating data centre campuses that boast industry-leading reliability, technological innovation, and a strong emphasis on energy and water efficiency.
SGP2 stands out as one of the most significant data centres in Singapore since the moratorium imposed on new developments in 2019, AirTrunk, partnering with technology companies, will ensure that SGP2 is developed in such a way that sustainability is taken into care consideration, to minimise the data centres environmental impact. For example, the project aims to achieve the Building and Construction Authority (BCA) GreenMark Platinum rating and features an industry-leading design Power Usage Effectiveness (PUE) of 1.20 — one of the lowest in Singapore. The campus will also incorporate green concrete and green steel to help to significantly reduce embodied carbon.
The completed data centre will provide essential cloud and artificial intelligence compute capacity, benefitting partners in Singapore and the broader Southeast Asian region.
Standard Chartered’s role
This transaction represents Singapore’s largest-ever loan and green loan for a data centre, marking a significant milestone in sustainable digital infrastructure financing in the region. Standard Chartered acted as the mandated lead arranger and bookrunner, collaborating with a consortium of 23 prominent local and international financial institutions. The innovative financing structure facilitated by this consortium has further strengthened AirTrunk’s leadership position in sustainable finance.
Deal structure
The financing package includes a Senior Secured Term Loan and Capex Credit Facilities. The loan is structured as a green loan from the outset, with the option to transition into a sustainability linked loan (SLL) in the future. It is fully aligned with the Technical Screening Criteria of the Singapore-Asia Taxonomy for Sustainable Finance and adheres to AirTrunk’s Green Financing Framework.
All financial incentives arising from the loan will be directed to AirTrunk’s social impact fund, underscoring the company’s commitment to supporting inclusive growth and prosperity across Singapore.
Awards
- Best Sustainable Finance Deal – APAC & Singapore by FinanceAsia Achievement Awards.
- Digital Deal of the Year by Project Finance International (PFI) Asia Pacific Awards.
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Standard Chartered has an important role to play in supporting our clients, sectors and markets to deliver net zero, but to do so in a manner that supports livelihoods and promotes sustainable economic growth. We currently provide financial services to clients, sectors and markets that contribute to greenhouse gas emissions however we’re committed to net zero in our own operations by 2025 and in our financed emissions by 2050.