SMBC leads QTS’ $1.28bn Data Centre Project

SMBC, a subsidiary of SMBC Group, has recently finalized a $1.28 billion financing for QTS Realty Trust, LLC (“QTS”) for the design and construction of a new state-of-the-art data centre campus. SMBC served as the Administrative Agent, Green Loan Coordinator, and Sole Coordinating Lead Arranger.

“SMBC is very committed to supporting our clients across the digital infrastructure sector. We’re delighted to expand our relationship with QTS in this space.”

The deal comes on top of another June 2022 financing for QTS’s own data centre complex, in which SMBC also served in the roles of Administrative Agent, Green Loan Coordinator, and Sole Coordinating Lead Arranger for this transaction. Both of QTS’s financings came from the North American green credit market. An independent assessment affirmed the environmental advantages of both projects and the financing’s compliance with the Green Loan Principles.

Juan (JC) Kreutz, Managing Director and Co-Head of Global Structured Finance, Americas, said, “SMBC is very committed to supporting our clients across the digital infrastructure sector. We’re delighted to expand our relationship with QTS in this space.”

“We are pleased to have led these two financings, providing an attractive source of capital for QTS,” said Quynh Tran, Managing Director and Co-Head of North American Infrastructure Finance at SMBC. “This latest transaction further builds upon SMBC’s focus and expertise in structuring transactions across product groups and geographic regions to provide our clients with the liquidity needed to meet their growth plans. Our team is very excited and pleased to provide QTS with green-finance solutions that will help to achieve their longer-term sustainability goals and metrics.”

With more than 9 million square feet of owned mega-scale data centre space spread across North America and Europe, QTS Realty Trust, LLC is a major provider of data centre solutions. Leading hyperscale IT corporations, businesses, and governmental organisations are served with safe, compliant infrastructure solutions, strong connectivity, and first-rate customer care from QTS thanks to its software-defined technology platform.

Tokyo-based SMBC Group, on the other hand, is one of the leading worldwide financial conglomerates. The financial services provider, with a 400-year history, provides a wide range of financial services, including banking, leasing, securities, credit cards, and consumer finance. More than 140 offices and 86,000 workers work for the SMBC Group globally in close to 40 nations. One of the three biggest banking companies in Japan, SMBC Group is held by Sumitomo Mitsui Financial Group, Inc. (SMFG). Shares of SMFG are traded on the Tokyo, Nagoya, and New York stock markets as well as ADRs. Its total assets were $1.97 trillion as of June 30, 2022.