YTL Power gets RM1.1b financing facility to fund data centre development

YTL Power gets RM1.1b financing facility to fund data centre development
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KUALA LUMPUR (Jan 19): YTL Power International Bhd’s wholly owned unit has been granted a RM1.1 billion Islamic term financing facility to fund the development of a data centre in Kulai, Johor.

The facility was emplaced to to YTL DC South Sdn Bhd for the development of the 48MW IT load hyperscale data centre (HDC), the joint mandated lead arrangers, Malayan Banking Bhd (Maybank) and OCBC Bank (M) Bhd, said in a statement.

“The transaction signifies YTL Power’s ongoing commitment towards transitioning to a green and circular economy, while contributing to its environmental objectives of climate change mitigation and the promotion of green buildings,” said Maybank and OCBC.

The two lenders said the HDC is part of YTL Power’s plans to develop the nation’s first 500MW green data centre park to be integrated with on-site solar photovoltaic power, which aims to provide data storage colocation services to clients looking for more sustainable and lower carbon solutions within Southeast Asia.

“The green data centre park serves as the foundation for achieving YTL Power’s greater objective of carbon neutrality for its data centres across the Southeast Asia region,” the duo noted.

YTL Power managing director Datuk Yeoh Seok Hong said the group’s focus on building its new regional green data centre business, solar power generations capabilities and other renewable energy solutions are a natural evolution in its growth and development.

Maybank global banking group chief executive officer Datuk Muzaffar Hisham said: “As one of the key relationship banks to YTL, we are pleased to extend our banking support towards YTL’s first green financing facility, in an effort to assist in the YTL Group’s sustainability agenda for a low carbon and climate resilient transition, which shall accelerate YTL’s aspiration of achieving carbon neutrality by 2050.”

OCBC managing director and investment banking head Tan Ai Chin said the bank has been a prime mover in pioneering various sustainable financing initiatives in the Malaysian capital markets. Being a responsible financial partner, Chin noted that OCBC Malaysia facilitates and supports the increasingly widespread acceptance of sustainable finance among Malaysian corporates in building a sustainable and habitable future. 

“As part of our allegiance towards advocating sustainable finance, OCBC has doubled up our sustainable financing target to S$50 billion, as compared to a previous set target of S$25 billion, to be achieved by 2025,” she added.

The Gold LEED certification is in compliance with the green loan principles published by the Loan Market Association, Asia Pacific Loan Market Association and Loan Syndication and Trading Association.

Shares in YTL Power closed one sen or 1.39% higher at 73 sen on Thursday (Jan 19), giving the group a market capitalisation of RM5.96 billion. 

S Kanagaraju