Blackstone-Backed AirTrunk Secures $1.6 Billion in Multi-Currency Debt for Singapore REIT IPO

AirTrunk, a data center operator backed by Blackstone, is gearing up for an initial public offering (IPO) in Singapore. To support this move, AirTrunk is lining up about SG$2 billion ($1.6 billion) of multi-currency borrowing from banks.

The debt package will have several tranches that mature in three to seven years and will be split between Singapore dollars and Japanese yen. This borrowing will help fund the planned real estate investment trust (REIT) IPO, as well as refinance existing loans.

Data center REITs are valued based on their ability to pay steady distributions, which come from rent minus operating costs and debt servicing. The interest rate on the borrowed funds is crucial in determining these payouts.