Digital 9’s Verne Global Iceland secures $100 million green loan

By Marisa Wong

Los Angeles, June 5 – Digital 9 Infrastructure plc has signed a new $100 million green term loan debt facility with an uncommitted $50 million accordion provision for Verne Global Iceland as borrower, according to a news release.

The facility is structured as a syndicated facility, fully underwritten by Natixis and with a fixed term of five years maturing in June 2028.

The interest rate payable in the first three years is SOFR plus 300 basis points, stepping up to SOFR plus 325 bps and SOFR plus 350 bps in years four and five, respectively.

Digital 9 said it will implement an appropriate hedging strategy to manage longer-term fluctuations in interest rates.

Verne Global has also signed up to a green financing framework in connection with the facility.

Loan proceeds will be used to fund additional capacity under construction and development in 2023; refinance Verne Global’s existing bridge loan facility for $26 million; repay $50 million of the $62 million shareholder loan owed to Digital 9 by Verne Global, which will be used by Digital 9 to reduce the drawings of its revolving credit facility.

Natixis acted as arranger and green loan coordinator.

Taylor Wessing LLP acted as legal adviser to Verne Global.

Latham Watkins LLP acted as legal adviser to Natixis.

Borrower Verne Global Iceland is a data center company in Iceland that is wholly powered by renewable energy. U.K.-based Verne Global is owned by private equity firm Digital 9, which has headquarters in Saint Helier, Jersey.

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