Fengate Asset Management’s portfolio company eStruxture Data Centers has secured $1.35 billion in new financing to support the rapid development of its data centres across Canada, including what the company calls the country’s first rated, asset-only securitization in the sector.

The financing package includes $750 million in asset-backed securities and a development-company revolving credit facility of up to $600 million in bank financing. The ABS notes were issued under eStruxture’s new green-finance framework.

“This is a major milestone for Canadian digital infrastructure financing, and demonstrates the credit quality, scale, and growth trajectory of eStruxture – the largest Canadian data center platform – and the eStruxture management team’s expertise,” said George Theodoropoulos, managing partner at Fengate.

“The tidal wave of data being generated by artificial intelligence and cloud computing, coupled with a growing focus on data sovereignty, is creating unprecedented demand for onshore data storage capacity, and eStruxture is well positioned to meet that demand.”

Todd Coleman, founder, president and CEO of Montreal-based eStruxture, said the “groundbreaking” financing marks a “watershed” moment for the company and the Canadian digital-infrastructure sector amid the increasing need for low-cost capital to build digital infrastructure at scale.

Fengate’s investment in eStruxture is made through its Infrastructure Fund III and Fund IV and includes capital from LiUNA’s Pension Fund of Central and Eastern Canada. The deal also involves secondary institutional investors co-led by Pantheon and Partners Group.

Guggenheim Securities served as lead structuring advisor, while Scotiabank acted as joint structuring advisor and joint active bookrunner with National Bank. The credit facility is being underwritten by Scotiabank and National Bank Financial.

Pictured: EStruxture location in Montreal.

Photo: EStruxture