Big banks collaborate on Johor data centre deal
PETALING JAYA: United Overseas Bank (M) Bhd (UOB) has announced its role as joint coordinator, mandated lead arranger, underwriter, and bookrunner in one of South-East Asia's largest data centre financing deals.
The landmark deal, which involves a dual currency loan of RM15bil, is also the largest syndicated green Islamic facility in Malaysia.
DayOne Data Centres Singapore Pte Ltd announced yesterday it had closed a landmark RM15bil equivalent multi-currency financing arrangement comprising a RM7.5bil Murabahah Term Financing facility and a US$1.7bil offshore term loan facility.
OCBC Bank (M) Bhd and its parent, Singapore-based Oversea-Chinese Banking Corp Ltd, is joint coordinator, mandated lead arranger, bookrunner, and green financing coordinator (MLAB), with OCBC Bank also serving as joint syariah adviser.
The deal supports DayOne's data centre development in the Johor-Singapore Special Economic Zone (JS-SEZ).
UOB arranged the financing in syndication, together with other banks.
The financing involved CIMB Investment Bank Bhd, the Singapore arm of CIMB Bank Bhd, Credit Agricole CIB, DBS Bank Ltd, Maybank Investment Bank Bhd, Standard Chartered Bank (Singapore), United Overseas Bank Ltd, and UOB (M) Bhd as MLABs.
UOB Malaysia chief executive officer Ng Wei Wei said the landmark transaction reflects the bank's commitment to supporting infrastructure projects that advance sustainable digital transformation across Asean.
'By jointly financing DayOne's data centre in the JS-SEZ, we are not only supporting Malaysia's digital economy but also strengthening the connectivity backbone that enables businesses from both sides of the Causeway to thrive in the digital age.
'We remain committed to the continuous support and development of the JS-SEZ as a strategic economic corridor that enhances regional connectivity and drives sustainable growth,' she said.
Headquartered in Singapore, DayOne is a global leader in digital infrastructure, with a growing footprint across tier-one and emerging markets, including Singapore, Johor, Batam in Indonesia, Greater Bangkok, Hong Kong, Tokyo, and beyond.
The financing facility enables DayOne to refinance existing loans while funding new data centre developments, creating a stable foundation for long-term growth and optimal capital allocation across their expanding regional portfolio.
Malayan Banking Bhd (Maybank) meanwhile said it is underwriting RM2.5bil to support DayOne Data Centres.
The amount is one-third of the largest syndicated Islamic financing for data centres in the Asia Pacific.
Maybank president and group chief executive officer Datuk Khairussaleh Ramli said the transaction represents Maybank's largest Islamic financing commitment to the data centre sector.
Meanwhile, OCBC Bank said the dual-tranche financing – structured under the Green Loan Principles – will partially fund the refinancing and capital expenditure of DayOne's data centres in Johor.
The data centres in Johor already meet or are expected to meet Leadership in Energy and Environmental Design (LEED) Gold or higher certification by the US Green Building Council, setting a new benchmark for sustainable digital infrastructure.
OCBC Bank chief executive officer Tan Chor Sen said that, as one of the largest integrated financial services groups in the region, OCBC's regional strength enables it to support both the onshore and offshore tranches of this landmark syndication.
'As a key MLAB, we supported DayOne with one of the highest underwriting commitments, reflecting our commitment to fostering a sustainable future that aligns with our leadership in responsible finance,' Tan said
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
18 minutes ago
- The Star
Trading ideas: BAuto, George Kent, JcbNext, CHHB, Thong Guan, BLand, UEM Edgenta
KUALA LUMPUR: Companies that could be in the spotlight following recent announcements include Bermaz Auto Bhd 's (BAuto), George Kent (M) Bhd, JcbNext Bhd , Country Heights Holdings Bhd (CHHB), Thong Guan Industries Bhd , Berjaya Land Bhd (BLand) and UEM Edgenta Bhd . BAuto's net profit for the financial year ended April 30, 2025 (FY2025) dropped by over 55% to RM155.9mil from RM345.58mil a year earlier, as revenue fell to RM2.62bil from RM3.91bil, mainly due to lower sales volume from its Mazda and Kia domestic operations. George Kent has partnered with Shanghai-listed Qingdao Topscomm Communication Co Ltd (Topscomm) to develop Malaysia's first locally branded ultrasonic water meter. JcbNext has disposed of 647,846 shares (or 1.95%) in Taiwan-based 104 Corp for RM20.05mil in the open market of the Taiwan Stock Exchange. CHHB is disposing of its entire stake in its wholly-owned subsidiary, Versatile Champion Sdn Bhd (VCSB) to South Strategy International Sdn Bhd for RM600,000. Thong Guan has scrapped its plan to sell its F&B business to major shareholder Foremost Equals after failing to agree on a final sale price. BLand is disposing of its entire 80% stake in joint venture company, Berjaya-Handico12 Co Ltd (BHandico12), to Vietnam-based Dong Thinh Phat Land JSC and Green Hill Construction Investment JSC for RM201.96mil. UEM Edgenta has tied up with 21 Estates Group FZCO to establish a new joint venture company (JV) and expand its property management presence in Dubai, United Arab Emirates.
The Star
18 minutes ago
- The Star
Expansion, new orders to lift VSI's earnings despite trade uncertainty
CIMB Research cut its earnings per share forecasts by between 10% and 20% for FY25 to FY27. PETALING JAYA: Analysts remain divided on the outlook for electrical and electronics manufacturing company VS Industry Bhd (VSI) following the release of its results for the third quarter of its financial year ending July 31 (3Q25), which came in below expectations. VSI posted net profit of RM23.77mil and revenue of RM909.41mil for the quarter. This was down from RM54.42mil and RM1.01bil in the same quarter a year ago. The results came in below CIMB Research's expectations, accounting for 49% of its full-year estimate and 52% of consensus. The year-to-date earnings declined 42% year-on-year and was said to be mainly due to weaker demand, higher labour costs in Malaysia, and start-up expenses from its new operations in the Philippines. Given the ongoing demand uncertainty amid subdued consumer sentiment and possible tariffs, CIMB Research cut its earnings per share forecasts by between 10% and 20% for FY25 to FY27. 'Near-term order flows from Malaysia and Singapore will remain dependent on evolving consumer sentiment and clarity on US tariffs following the end of the 90-day grace period in early July,' CIMB Research said. Following its earnings revision, CIMB Research maintained a 'hold' call on VSI with a lower target price of 79 sen, adding that the discount appropriately captures the heightened earnings risks. Hong Leong Investment Bank Research (HLIB Research) also flagged concerns about the group's earnings visibility. HLIB Research reported that VSI's core profit after tax and minority interest of RM69.6mil for the nine months of its current financial year (9M25) was 26.3% lower, meeting only half of its full-year forecast. 'While we anticipate some frontloading activity from US-exposed customers in 4Q25, we see downside risk to management's FY26 guidance given potential inventory adjustments and an uncertain order environment after frontloading,' HLIB Research said. Despite this, the research house pointed to a potential earnings boost from the ramp-up of the group's Philippines operations and a newly secured contract from a big customer. HLIB Research maintained its 'hold' rating on VSI with a lower target price of 72 sen, from 86 sen.
New Straits Times
33 minutes ago
- New Straits Times
Australia, New Zealand dollars tumble as Israel's strike on Iran hammers global risk
SYDNEY: The Australian and New Zealand dollars tumbled on Friday as Israel's strike on Iran hammered global stocks and drove investors into safe-haven assets, with domestic bond yields diving to over a month lows. The commodity-sensitive currencies often track global risk sentiment and tend to take a hit when equity markets slide. The Aussie plunged 0.9 per cent to US$0.6474, having risen 0.5 per cent overnight to as high as US$0.6534. It was already showing signs of fatigue as the currency has been unable to break a key resistance level of US$0.6550 overnight even as the greenback slid due to another round of soft data. For the week, it is down 0.3 per cent. The kiwi dollar dropped 1 per cent to US$0.6011. It gained gaining 0.7 per cent overnight, hitting a high of US$0.6071. Support comes in around $0.5990, while resistance is at the multi-month top of US$0.6080. For the week, it is down 0.1 per cent. Israel said early on Friday that it struck Iran. Oil prices jumped over 6 per cent, Wall Street futures dropped over 1 per cent, while safe-haven currencies like the Japanese yen and Swiss franc rose. Local bonds also rallied. Australia's ten-year government bond yields slid 11 basis points to 4.133 per cent, the lowest since May 1, while New Zealand's ten-year government bond yields dived 8 bps to a six-week low of 4.529 per cent. Sean Callow, a senior analyst at ITC Markets, said the trend for the Aussie is still up given the pressure on the U.S. dollar from a sluggish US economy and investor unease over the US policy outlook. "Investors are likely to expect that Israel's strikes will be contained to a relatively short period, not something that will dictate market direction multi-week," he said. Overnight, another round of weak US data - higher weekly jobless claims and soft producer prices - meant markets have now fully priced in a rate cut from the Federal Reserve by September. That pushed the U.S. dollar to its lowest since early 2022, although it did rebound a little on Friday. Down Under, swaps imply around an 80 per cent chance the Reserve Bank of Australia will cut rates by a quarter point to 3.60 per cent at its next meeting on July 8, and move to 3.10 per cent by year-end.
