Yondr Group has secured two new corporate financing facilities to support expansion of its hyperscale data centre operations across Europe and North America, as demand for cloud and AI infrastructure increases.
The company said the financings comprise a new Global Letter of Credit (LC) Facility and a European Holdco Facility, aimed at providing additional financial flexibility to support campus growth, accelerate delivery timelines, expand into new markets and secure additional capacity.
According to Yondr, the new standalone Global LC Facility is intended to support utility-related letter of credit requirements, which it said are becoming more significant in securing power for large-scale data centre developments.
Yondr cited access to powered land as a key constraint for the data centre industry, noting that utility providers are increasingly requiring stronger security commitments to allocate power capacity. The company said securing letter of credit capacity is intended to help it compete for power connections for future developments in North America and Europe.
The Global LC Facility was arranged by Natixis, with RBC Capital Markets and Société Générale as lenders. Yondr said it was represented by Linklaters LLP as sponsor counsel, while Milbank LLP acted as lender counsel.
Yondr also secured a European Holdco Facility, which it said would provide additional capital across its European platform, reduce asset-level leverage and provide funding flexibility as it expands in the region.
Lenders to the European Holdco Facility include BNP Paribas, IFM Investors, F2i and Principal Asset Management. Yondr said it was represented by Simpson Thacher & Bartlett LLP as sponsor counsel, with Latham & Watkins acting as lender counsel.
Sandip Mahajan, CFO at Yondr, said: “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.”
Darragh Kiely, VP Corporate Finance & Capital Markets at Yondr, added: “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.”
