Yondr has secured two new corporate financing facilities to support its expansion in Europe and North America.
The package includes a global letter of credit facility and a European holdco facility, giving the data centre developer additional funding options as it adds capacity across its international estate.
The global letter of credit facility is intended to meet utility-related letter-of-credit requirements, which have become more important as power access tightens for large data centre projects. The structure is expected to help Yondr secure power connections for future developments in North America and Europe.
Natixis arranged the facility, with RBC Capital Markets and Société Générale as lenders. Linklaters advised Yondr, while Milbank advised the lenders.
The separate European holdco facility is designed to provide capital across Yondr's mostly stabilised European platform. It is intended to support regional growth, reduce leverage at the asset level and give the company more flexibility in funding further expansion.
BNP Paribas, IFM Investors, F2i and Principal Asset Management are the lenders on that facility. Simpson Thacher & Bartlett advised Yondr, and Latham & Watkins advised the lenders.
Power access
The financing comes as data centre operators face intensifying competition for electricity supply, particularly for large campuses serving cloud and artificial intelligence workloads. Utility providers are seeking stronger security commitments before allocating capacity, making letter-of-credit arrangements a more prominent part of project development.
That shift has increased the importance of corporate-level financing structures for developers seeking to secure powered land and move quickly on new sites. For operators with projects across several countries, access to flexible facilities can also help bridge timing gaps between land acquisition, utility commitments and construction funding.
Yondr develops, owns and operates hyperscale data centres, a segment focused on large-scale facilities for major cloud and digital infrastructure customers. Expansion in Europe and North America has become a priority across the sector as demand for capacity rises and supply constraints persist in key hubs.
"Yondr's balance sheet strength facilitated us establishing these facilities and they represent another important step in enhancing Yondr's ability to scale at pace across key global markets. Demand for digital infrastructure continues to accelerate and having the right financial structures in place is critical to maintaining speed, flexibility and execution certainty. Access to power is becoming increasingly competitive across the industry, and these facilities further strengthen our ability to move quickly and decisively in securing strategic opportunities across both Europe and North America," said Sandip Mahajan, Chief Financial Officer at Yondr.
Yondr also highlighted the need for greater funding headroom as its project pipeline expands. The second facility gives the company another source of capital against a European platform it described as largely stabilised.
"We've worked closely with a strong group of financial partners to establish facilities that support both the immediate needs and long-term growth ambitions of the business. With incremental capacity across both financings, these facilities are particularly important for us as the market continues to evolve and our capital requirements grow. Together, these financings provide a strong platform from which Yondr can continue expanding its global footprint and delivering critical data center capacity at scale," Darragh Kiely, Vice President, Corporate Finance & Capital Markets at Yondr, said.