Blackstone Inc.’s data center operator, AirTrunk, is negotiating a S$2 billion (US$1.6 billion) loan with banks. The financing will support the initial public offering of a Singapore-based real estate investment trust (REIT).
AirTrunk assets will back the proposed REIT. The loan proceeds will fund asset acquisitions and refinance existing debt.
The IPO will test investor appetite for the Asian data center market. Banks are becoming increasingly selective in lending to the sector due to high exposure limits.
The loan includes multiple tranches with maturities ranging from three to seven years. Debt will be denominated in both Singapore dollars and Japanese yen.