After the successful close of the Union Park 1 project financing in August 2023, ING has announced it has supported Ark Data Centres with raising two additional £200m project financing packages for Union Park 2 and Union Park 3 – the next phases of its Union Park data centre campus in Hayes, London.
These debt structures comprise two consecutive but separate project financings for Union Park 2 in August 2024 and Union Park 3 in October 2024. Financing each phase separately ensured Ark has maximum flexibility on a per-project basis from a time and contract perspective.
The financings include a five-year £200 million senior secured term project finance facility.
Given Ark and the Union Park projects’ strong sustainability credentials, one loan was structured as a Green Loan and the other as a Sustainability Linked Loan, in line with the Green Loan and Sustainability-Linked Loan Principles of the Loan Market Association, respectively.
Ark Data Centres is a leading UK-based data centre operator servicing clients across the private and public sectors, providing stable and highly secure co-location services. Ark is considered a market leader in sustainability within its sector and is part of the Climate Neutral Data Centre Pact. It has well-developed sustainability practices, including leading power usage efficiency ratios and pioneering design, construction and operating standards.
ING played a leading advisory role on these transactions, acting as Sole Co-Ordinator, Sole Sustainability Co-Ordinator, Mandated Lead Arranger, and Facility & Security Agent. The heavily oversubscribed transactions were supported by a strong club of lenders, consisting of ABN Amro, Credit Agricole, NIBC, Axa and Nord LB.
Sicco Boomsma, Managing Director, TMT & Healthcare, ING, said: “We are delighted to have supported Ark Data Centres on these transactions. ING’s strong relationship with Ark, ING sector expertise in digital infrastructure and technology sectors and our aim to be a leader in the Sustainable Finance market was key in the success of these transactions. We look forward to continuing to work together as Ark grows its best-in-class digital infrastructure footprint. I want to thank the company and their shareholders for the trust bestowed upon ING, and the banks for their unwavering support during these transactions. Congratulations to Ark Data Centres, its shareholders and all teams involved.”
