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Clifford Chance advises on Asia’s first sustainability-linked perpetual securities

17 January 2024

Clifford Chance advises on Asia’s first sustainability-linked perpetual securities

Global law firm Clifford Chance has advised DBS Bank, HSBC, Standard Chartered Bank and UOB as lead managers on the Reg S offering of S$450 million 5.70% sustainability-linked perpetual (SLP) securities issued by STT GDC Pte. Ltd. (STT GDC), one of the world's fastest-growing data centre providers.

The transaction marks several market firsts. This is the first Singapore dollar-dominated SLP, the first-ever SLP security in Asia, as well as the first public perpetual by a company that exclusively operates as a data centre.

The perpetual securities were issued under STT GDC's S$1.5 billion multicurrency debt issuance programme and are aligned with the Sustainability-Linked Bond Principles published by the International Capital Market Association. This transaction supports STT GDC's stringent Key Performance Indicators and Sustainability Performance Targets, which includes increasing its renewable energy use to 60% by 2026, as outlined in its Sustainability-Linked Financing Framework focused on achieving carbon-neutral operations by 2030.

Partner Gareth Deiner led the deal team comprising counsel Ying Chiang Chong, senior associate Claire Neo, associate Joel Sherard and trainee associate Yasmin Yousoof.

Lead partner Gareth commented, “This transaction demonstrates how public markets can offer the depth, reach, and flexibility needed for a sustainable finance solution. It combines the advantages of renewable energy and the necessity of carbon transition with the economic imperatives of digital transformation in the real economy.  We would like to congratulate STT GDC and their investment banking advisers on this groundbreaking achievement in the Asia-Pacific capital markets and sustainable finance." 

As one of the fastest-growing data centre providers, STT GDC aims to power a sustainable digital future with its global platform serving as cornerstones of the digital ecosystem. The company operates across Singapore, the United Kingdom, Germany, India, Thailand, South Korea, Indonesia, Japan, the Philippines and Malaysia, supporting businesses across industry sectors in their local and international growth.

Clifford Chance has advised on several major sustainability-related deals in the region, such as the world's largest Orange Bond by Impact Investment Exchange, South East Asia's first public sustainability-linked bond issuance by Surbana Jurong Group and Bayfront Infrastructure’s US$410 million infrastructure asset-backed securities.