KKR and Singtel group seek $5 billion loan for STT GDC buyout: Sources
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A data centre in Bengaluru, India, belonging to ST Telemedia Global Data Centres.
PHOTO: ST FILE
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Singapore - A consortium comprising KKR and Singtel is in talks with banks for a loan of around $5 billion to support its proposed purchase of ST Telemedia Global Data Centres (STT GDC), according to people familiar with the matter.
The deal may be structured as a bridge facility – equally split into a term loan and revolving credit tranche – and clubbed between a group of banks, the people said. A subsequent takeout financing could follow, they said, adding that discussions are ongoing and details remain subject to change.
If finalised, this deal could mark Asia’s largest leveraged buyout financing in the data centre sector, according to Bloomberg-compiled data.
It will also contribute to a wave of big ticket financings driven by surging demand for cloud services amid the region’s artificial intelligence boom. The most recent comparable was a A$5.5 billion (S$4.7 billion) loan supporting Blackstone’s A$24 billion purchase of Australia’s AirTrunk in 2024.
Spokespeople for KKR and STT declined to comment, while Singtel did not respond to requests for comment.
Based in Singapore, STT GDC is one of Asia’s largest data centre operators, with more than 100 such facilities across 20 markets including India, South Korea, Japan and Malaysia, according to its website. The company also maintains a presence in Europe, with operations in Britain, Italy and Germany.
The proposed buyout follows the consortium’s $1.75 billion investment in 2024 for a minority stake in STT GDC, Bloomberg News reported. Following that transaction, KKR holds approximately 14.1 per cent of the company, while Singtel owns 4.2 per cent. BLOOMBERG
