Digital Realty Secures $614 Million in Swiss Franc Notes Amid Green Bond Launch

Digital Realty has priced approximately CHF510 million ($614 million) in senior unsecured Swiss franc notes and introduced an offering of euro-denominated green senior notes. The Swiss franc notes, issued through subsidiary Digital Constellation B.V., were priced on September 28 and are set to mature in 2029, 2032, and 2036, with an issuance date of October 6, 2026.

The proceeds from the Swiss franc notes, totaling about CHF508.4 million, will be used to repay borrowings under global revolving credit facilities and support acquisitions, development, working capital, and potential refinancing of existing securities. Meanwhile, the euro green notes will fund eligible green projects, with any unallocated funds going toward debt repayment, property acquisitions, and general corporate purposes.

Analysts have noted potential valuation risks, citing a high price-to-earnings ratio that could limit upside if growth or execution falls short. The most recent analyst rating on the stock is a buy, with a price target of $225.00.

The dual offering reflects Digital Realty's strategy to diversify its funding sources and manage its balance sheet effectively. As a global real estate investment trust focused on data centers, the company serves cloud providers, enterprises, and network operators, and boasts a market capitalization of $66.24 billion.