Teraco, a digital realty company in South Africa and a leading carrier-neutral data centre/interconnection services provider, has announced the conclusion of a syndicated loan facility worth R11.8 billion, about $676m, today.
Of this, R5.7 billion ( ~$327m ) will be used to finance the company’s continued growth, and R6.1 billion (~$350m) will refinance and extend the average maturity profile of existing drawn debt. The new facilities mature in December 2028, providing a 2.9-year extension of the weighted average tenor.
According to an official statement, the funding is for developing Teraco’s key interconnection hubs located within the Isando, Bredell, and Cape Town campuses.
It will also fund a significant renewable energy generation program aligned with the company’s long-term Environmental, Social and Governance (ESG) goals. Teraco’s new data centre builds are designed to put sustainability first, minimise environmental impact, reduce energy consumption, and minimise water usage.
The syndicated loan was led by Absa, South Africa’s financial giant, and included several other large financial institutions. For the digital realty company, the presence of these larger institutions hopes to provide an avenue for further funding.
Speaking on the support and the conclusion of the syndicated loan, Samuel Erwin, the Chief Financial Officer at Teraco, said, “We are committed to managing our environmental impact sustainably by optimising our use of energy and natural resources.”
We remain focused on efforts to create energy-efficient data centres that address our environmental challenges, and we’re grateful for the continued support from partners that share our vision.”
Read Also: Africa Data Centres to build 2MW data centre in Rwanda
About Teraco
Teraco was founded in 2008 by Tim Parsonson. Its leading interconnection-rich facilities provide secure colocation and related services to more than 550 carrier and enterprise clients, including Johannesburg, Cape Town, and Durban. This new loan is not the first for Teraco; in February 2021, it raised $2.5m.
Teraco’s investment in digital infrastructure supports the booming market for world-class data centre facilities among enterprises and cloud providers. Enterprises are speeding up their digital transformation strategies and focusing on cloud adoption strategies.
Organizations also use it to scale their IT infrastructure dynamically, adopt hybrid multi-cloud architectures and connect with strategic business partners within the Platform Teraco ecosystem of global and local clients.
With this new funding, Teraco’s proposed data centres are designed to put sustainability first, minimize environmental impact, reduce energy consumption, and minimize water usage.
About Digital Realty
Digital Realty connects businesses and data by providing a full range of data centre, colocation, and interconnection solutions. PlatformDIGITAL, the company’s global data centre platform, offers customers a secure data “meeting place” and a proven Pervasive Datacenter Architecture (PDxTM) solution methodology for driving innovation and managing Data Gravity challenges.
With a global data centre footprint of 300+ facilities in 50+ metros across 27 countries on six continents, Digital Realty provides its customers access to the connected communities that matter to them.
Read Also; Digital Realty to acquire 55% of South African data company, Teraco for $3bn
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