Digital Realty Prices €1 Billion Euro Notes Due 2036
Digital Realty's finance subsidiary priced €1 billion in guaranteed notes at 5.125%, maturing in 2036.
Digital Realty Trust (NYSE: DLR), the world's largest cloud- and carrier-neutral data center platform, moved to raise €1 billion in European debt markets on Tuesday, pricing guaranteed notes through its wholly owned indirect finance subsidiary, Digital Euro Finco, LLC.
The notes carry a coupon of 5.125% and are due in 2036, giving the offering a roughly decade-long tenor. The securities were priced at 99.289% of par value, a slight discount that adjusts the effective yield above the stated coupon rate.
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The offering was structured through Digital Euro Finco, LLC, which operates as an indirect finance arm of the company's operating partnership, Digital Realty Trust, L.P. The Austin, Texas-based real estate investment trust has increasingly tapped international capital markets to fund its global data center expansion as demand for cloud and colocation infrastructure continues to accelerate.
The euro-denominated structure aligns the company's liability profile with its significant European asset base and revenue streams, a strategy common among multinational REITs seeking to manage currency exposure. No proceeds allocation was specified in the announcement.
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