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Latham & Watkins Advises on First Public Data Center Securitization in EMEA

June 10, 2024
Cross-practice team advises Barclays and SMBC on a £600 million data center securitization for Vantage Data Centers.

Latham & Watkins have advised the underwriters of the first public securitization of data centers in EMEA. Vantage Data Centers, a leading global provider of hyperscale data center campuses, sponsored the inaugural issuance of £600 million in securitized term notes, which was led by Barclays Bank PLC, as sole structuring advisor and sole green structuring advisor, together with Sumitomo Mitsui Banking Corporation (SMBC) Nikko Capital Markets as joint lead managers.

The notes were issued by Vantage Data Centers Jersey Borrower SPV Limited, a special-purpose entity within the Vantage group, and backed by leases granted in respect of two data centers in Newport, Wales that are owned and operated by Vantage. Their proceeds will be used towards repaying Vantage’s existing warehouse facility as well as for general corporate purposes. The groundbreaking deal marks Vantage’s tenth data center securitization globally and ninth green debt issuance. The deal was structured to comply with ICMA’s Green Bond Principles as a result of the underlying data centers having renewable energy sources and efficient power usage.

The Latham team was led by London finance partner Jeremiah Wagner, with associates Kamal Dalal, Niamh Nic Uileagoid, Anca Moldovan, Jason Wong, and Julius Rogenhofer. Advice was provided on real estate matters by London partner Quentin Gwyer, with counsel Michael Beanland, and associates Calvin Ng and Lucy Hartland; on tax matters by London tax partner Karl Mah, with associates Aaron Bradley and Sam Duncan, and New York tax partner Jiyeon Lee-Lim, with associate Kathryn Harrington; on matters of US securities law by New York partners Kevin Fingeret and David Siegel, with associates Maeve Chandler and Marissa Gluck; and on matters relating to the green bond aspects of the transaction by Riyadh partner Edward Kempson, with associates Peter Neuböck and James Bee.