Second bond to finance expansion
DigiPlex, the Nordic data centre company majority owned by Carlyle Group co-founder, Bill Conway, has again tapped the public bond market to take advantage of low interest rates to fund its expansion.
By using a floating-rate bond DigiPlex has signalled its expectation that rates in the region will remain low for years, and its view that they present an opportunity to fund business growth.
The stable cash flow from its operational data centres, resulting from long-term contracts with very high rates of renewal and predictable operating expenses, has allowed DigiPlex to recapitalise the businesses by the successful issuance of NKr 575 million bond. The funds raised shall be used to fund further expansion as demand for DigiPlex data centres in the region remains robust.
Byrne Murphy, Chairman of DigiPlex, said: “We have a laser focus on innovation at DigiPlex. This is reflected in our state-of-the art data centre designs, but also in our very selective use of capital to fund our continued growth. We are fortunate in having a leadership team that understands how to use the bond market judiciously, and we are making the most of today’s remarkably low interest rates.
“We have chosen a floating-rate note because we believe that interest rates in the region will remain low for years to come, and may yet drop lower. We are happy to put our money where our mouth is in this respect. For a growing business, this second bond by DigiPlex is a prudent move.”