Digital Realty a leading global provider of carrier- and cloud-neutral data center, colocation and interconnection solutions, announced today that Digital Constellation B.V., an indirect wholly-owned finance subsidiary of the company's operating partnership, Digital Realty Trust, L.P., has closed an offering of CHF225 million of 1.6803% Swiss bonds due 2029, CHF185 million of 2.0600% Swiss bonds due 2032 and CHF100 million of 2.4150% Swiss bonds due 2036. Digital Realty announces closing CHF510 million of Swiss bonds.
The Swiss bonds will be senior unsecured obligations of Digital Constellation B.V. and will be fully and unconditionally guaranteed by the company, the operating partnership and Digital Intrepid Holding B.V., an indirect wholly-owned holding and finance subsidiary of the operating partnership. Interest on the 2029 Swiss bonds will be payable annually in arrears at a rate of 1.6803% per annum from and including October 6, 2026, and the 2029 Swiss bonds will mature on October 8, 2029. Interest on the 2032 Swiss bonds will be payable annually in arrears at a rate of 2.0600% per annum from and including October 6, 2026, and the 2032 Swiss bonds will mature on October 6, 2032. Interest on the 2036 Swiss bonds will be payable annually in arrears at a rate of 2.4150% per annum from and including October 6, 2026, and the 2036 Swiss bonds will mature on October 6, 2036.
The company intends to use the net proceeds from the offering of the Swiss bonds to allocate an amount equal to the net proceeds from the offering of the Swiss bonds to finance or refinance, in part or in full, new and/or existing projects consistent with Digital Realty's Green Bond Framework, including the development and redevelopment of such projects. Pending the allocation of the net proceeds of the Swiss bonds to such projects, all or a portion of an amount equal to the net proceeds from the Swiss bonds may be used to temporarily repay borrowings outstanding under the operating partnership's global revolving credit facilities, acquire additional properties or businesses, fund development opportunities, invest in interest-bearing accounts and short-term, interest-bearing securities which are consistent with the company's intention to qualify as a REIT for U.S. federal income tax purposes, and to provide for working capital and other general corporate purposes, including potentially for the repayment of other debt, or the redemption, repurchase, repayment or retirement of outstanding equity or debt securities, or a combination of the foregoing.
The Swiss bonds are being sold only outside the United States in reliance on Regulation S under the U.S. Securities Act of 1933, as amended. The Swiss bonds have not been and will not be registered under the Securities Act and may not be offered or sold in the United States or to United States persons absent registration or an applicable exemption from registration requirements.
About Digital Realty
Digital Realty brings companies and data together by delivering the full spectrum of data center, colocation, and interconnection solutions. PlatformDIGITAL, the company's global data center platform, provides customers with a secure data meeting place and a proven Pervasive Datacenter Architecture solution methodology for powering innovation.
