DayOne secures RM15b multicurrency financing for data centres in Johor

• The financing involves CIMB Group Holdings Bhd, Crédit Agricole, DBS Bank Ltd, Malayan Banking Bhd, Standard Chartered, United Overseas Bank, and Oversea-Chinese Banking Corporation Ltd.

KUALA LUMPUR (June 11): A developer of data centres planned in the Johor-Singapore Special Economic Zone (JS-SEZ) has secured RM15 billion in financing from a group of lenders.

Singapore-based DayOne secured the multi-currency financing, comprising RM7.5 billion onshore Islamic facility and a US$1.7 billion offshore term loan, from a consortium of local and international banks. Its anchor data centres will be in Nusajaya and Kempas Tech Parks, both within the JS-SEZ.

The financing involves CIMB Group Holdings Bhd (KL:CIMB), Crédit Agricole, DBS Bank Ltd, Malayan Banking Bhd (KL:MAYBANK), Standard Chartered, United Overseas Bank (UOB), and Oversea-Chinese Banking Corporation Ltd (OCBC).

Minister of Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz witnessed a signing ceremony for the loan syndication on Wednesday. The transaction is also the largest syndicated green Islamic facility in Malaysia.

“This landmark transaction represents Maybank’s largest Islamic financing commitment to the data-centre sector,” said its chief executive officer Khairussaleh Ramli.

Maybank is the joint shariah adviser, joint coordinator, mandated lead arranger and bookrunner, joint hedge coordinator, and joint green financing and loan coordinator for the financing facility.

Structured under the Green Loan Principles, part of the proceeds from the dual-tranche financing is for refinancing and to support capital expenditure for DayOne’s data centres in Johor, that meet or are expected to meet LEED Gold or higher certification.

The development in the JS-SEZ represents a “critical bridge between Malaysia and Singapore’s digital ecosystems, positioning Asean as a premier destination for cloud computing and digital services,” UOB, a joint coordinator, mandated lead arranger, underwriter and bookrunner, said in a separate statement.

DayOne has data centres across Asia, including in Singapore, Indonesia, Bangkok, Hong Kong, and Tokyo.

By jointly financing DayOne’s data centre in the JS-SEZ, we are not only supporting Malaysia’s digital economy but also strengthening the connectivity backbone that enables businesses from both sides of the Causeway to thrive in the digital age,” said UOB Malaysia CEO Ng Wei Wei.

“We supported DayOne with one of the highest underwriting commitments, reflecting our commitment to fostering a sustainable future that aligns with our leadership in responsible finance,” said Tan Chor Sen, chief executive officer of OCBC Malaysia.

OCBC is also one of the joint coordinators, mandated lead arrangers and bookrunners, and green financing coordinators and joint shariah advisers for the facility.

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