Canadian pension fund backs NEXTDC

NEXTDC has launched a $1 billion wholesale offer of subordinated hybrid securities, supported by a binding commitment from La Caisse, the Quebec-based pension provider.

The hybrid notes will have a non-call period of five years and a maturity of 100 years.

The Data Centre-as-a-Service provider intends to continue pursuing subordinated notes issue in the Australian wholesale debt market to strengthen its long-term capital position and diversify the pool of funding.

It operates 17 data centres and reported capital expenditure of around $1.3 billion in the first half of the financial year in the development of centres across Sydney, Melbourne and Kuala Lumpur.

NEXTDC said backing by La Caisse reflected the confidence on its strategically located asset base, development pipeline and delivery capabilities.

It added the hybrid securities will provide it with flexible, long-term capital to support development of key data centre assets and advancing future capacity expansions.

NEXTDC chief executive and managing director Craig Scroggie said the commitment will help it to deliver its contracted forward order book across FY29 and make further investments across new projects.

"We are delighted with this binding commitment from La Caisse, a long-term investor with deep experience in infrastructure, as further validation of our growth strategy," Scroggie said.

La Caisse executive vice-president and head of infrastructure and sustainability Emmanuel Jaclot said the investor sees this as a promising first step towards a long-term partnership with NEXTDC.

"This commitment will help underpin NEXTDC's construction program, supporting growing demand for digital infrastructure in Australia and adding to La Caisse's long track record in partnering with high-quality infrastructure operators through their growth phase," Jaclot said.

NEXTDC said the hybrid notes are deeply subordinated instruments, ranking junior to all existing and future debt obligations of the group.