eStruxture Data Centers, a Fengate portfolio company, announces C$1.35 billion financing and first Canadian data center sector asset-backed securities

eStruxture Data Centers (eStruxture), a Fengate Asset Management (Fengate) portfolio company, has secured C$1.35 billion in new financing to accelerate the development of data centers across Canada. The innovative financing includes C$750 million in asset-backed securities (ABS), making it the first rated, Canadian asset-only securitization in the data center sector.

The financing package – which also includes a DevCo Revolving Credit Facility of up to C$600 million of bank financing – will fund eStruxture’s expansion as demand for data storage continues to soar.

“This is a major milestone for Canadian digital infrastructure financing, and demonstrates the credit quality, scale, and growth trajectory of eStruxture – the largest Canadian data center platform – and the eStruxture management team’s expertise,” said George Theodoropoulos, Managing Partner at Fengate.

“The tidal wave of data being generated by artificial intelligence and cloud computing, coupled with a growing focus on data sovereignty, is creating unprecedented demand for onshore data storage capacity, and eStruxture is well positioned to meet that demand.”

“This groundbreaking financing marks a watershed moment for eStruxture and the Canadian digital infrastructure sector as access to strategic, low-cost capital becomes imperative to building digital infrastructure at scale,” said Todd Coleman, Founder, President and CEO of eStruxture.

The ABS notes were issued under eStruxture’s industry-leading Green Finance Framework, launched earlier this month.

Fengate’s investment in eStruxture is on behalf of Fengate Infrastructure Fund III, Fengate Infrastructure Fund IV, and their affiliated entities, including an investment by LiUNA’s Pension Fund of Central and Eastern Canada. It also includes capital from a group of institutional secondary investors co-led by Pantheon and Partners Group.

Guggenheim Securities acted as Lead Structuring Advisor, Scotiabank acted as Joint Structuring Advisor and Joint Active Bookrunning Manager, and National Bank acted as Passive Bookrunner for the securitized notes.

The DevCo Credit Facility is being underwritten by Scotiabank and National Bank Financial.