Australian data centre giant NEXTDC (ASX:NXT) announced a $1 billion wholesale offer of subordinated hybrid securities, underpinned by a major binding commitment from Canadian global investment group La Caisse.
The capital injection is designed to fuel NEXTDC’s growth strategy and accelerate the development of its national data centre pipeline through 2029.
The partnership highlights international confidence in Australia’s digital infrastructure sector, with La Caisse’s involvement providing a long-term foundation for the company’s expansion.
The hybrid securities are structured as deeply subordinated debt instruments with a unique 100-year maturity and a five-year non-call period.
Strategically classified as debt for accounting purposes, these securities sit outside NEXTDC’s senior debt covenants, offering the company enhanced financial flexibility.
Key features of the arrangement include lower cash coupons during the initial five years, incremental step-ups until year ten, and the ability for the company to defer interest payments at its discretion.
The offer contains no equity conversion features, ensuring that the funding supports growth without immediate shareholder dilution.
NEXTDC CEO Craig Scroggie characterised the move as a "step-change" for the business, vital for delivering on a contracted forward order book.
The offer is expected to close on April 23.