Digital Realty Closes CHF510 Million Swiss Bond Offering
Digital Realty secured CHF510 million across three Swiss franc-denominated bond tranches with maturities ranging from 2029 to 2036.
Digital Realty Trust (NYSE: DLR), the Austin, Texas-based global data center operator, announced Monday the completion of a CHF510 million Swiss bond offering issued through Digital Constellation B.V., an indirect wholly-owned finance subsidiary of its operating partnership.
The deal was structured in three tranches: CHF225 million in bonds carrying a 1.6803% coupon due in 2029, CHF185 million at 2.0600% maturing in 2032, and CHF100 million at 2.4150% with a 2036 maturity. The multi-tranche structure allows the company to stagger its debt obligations across different interest rate environments over the next decade.
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The Swiss franc bond market has historically attracted investment-grade borrowers seeking diversified funding sources outside U.S. dollar capital markets. By tapping that market, Digital Realty broadens its investor base while locking in fixed-rate financing at rates that reflect the relatively lower Swiss franc yield environment compared to comparable U.S. dollar instruments.
Digital Realty positions itself as a carrier- and cloud-neutral provider of data center, colocation, and interconnection solutions operating on a global scale. The company's decision to raise capital through a European subsidiary underscores the international scope of its operations and financing strategy at a time when demand for data center capacity continues to climb worldwide.
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