Big banks collaborate on Johor data centre deal
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
2 hours ago
- The Star
Yext CEO offers to take company private in $1.1 billion deal
FILE PHOTO: A Specialist trader wears a Yext vest during the company's IPO on the floor of the New York Stock Exchange (NYSE) in New York, U.S., April 13, 2017. REUTERS/Brendan McDermid/File Photo (Reuters) -Yext's CEO Michael Walrath has proposed taking the search optimization company private in a deal valued at about $1.1 billion, it said on Monday, sending shares up 9% in early trading. Walrath, who owns 2.8% of the company's shares according to data compiled by LSEG, offered $9.00 per share in cash for the stock he does not already own — a premium of 11.2% to Friday's closing price. Walrath indicated that the proposal is backed by reputable and well-capitalized financing sources, the company said. It did not disclose the names of the funding sources. Yext's board has formed a special committee to evaluate the proposal and any strategic alternatives. There is no assurance the proposal will result in a transaction, the company said. The New York-based company also said it is withdrawing its forecast for the rest of the fiscal year 2026 in light of the proposal. The company's full-year revenue for 2025 rose 4% to $421.0 million, but its net loss jumped to $27.9 million from $2.6 million from a year ago. Its stock has gained more than 50% in the past 12 months. Yext provides software that helps companies increase their visibility on AI and traditional search, social media, websites and direct communications platforms. "Yext has achieved remarkable progress, and I believe now is the right time to explore a transaction that can deliver compelling value to stockholders," Walrath said in a statement. (Reporting by Kritika Lamba in Bengaluru; Editing by Sahal Muhammed)
New Straits Times
2 hours ago
- New Straits Times
Hong Kong arrests two over suspected US$6.7mil water scam
HONG KONG: Hong Kong police said Monday they had arrested two people over a suspected scam involving a water supplier that may have cheated the government in a contract worth nearly US$7 million. A company named Xin Ding Xin won a deal in June to provide 1.88 million bottles of water for dispensers in some government offices – the first time such a contract went to a Chinese brand, according to local media. But police said the firm was found to have relied on false documents during the tender process, claiming to source its water from another mainland Chinese supplier when in fact they had no business ties. Officers arrested a 61-year-old man and a 57-year-old woman for fraud on Sunday, seizing around 2,600 bottles of water in a warehouse along with documents and electronic devices. The arrests have prompted water-cooler discussions across the Chinese finance hub on how bureaucrats missed the tell-tale signs of a scam when awarding a 36-month contract worth HK$52.9 million (US$6.77 million). Payment for the delivered batches has not yet been settled, according to police. The Government Logistics Department said on Monday that it had terminated its bottled water supply contract with Xin Ding Xin, as well as "three other contracts for the supply of chemicals which were affiliated with XDX's owner." Christopher Hui, Hong Kong's Secretary for Financial Services and the Treasury, set up a dedicated task force following an urgent meeting on Sunday. Hui also ordered "remedial actions" and invited the Audit Commission to review the tender exercise. "The incident has raised concerns among government colleagues and drawn extensive attention from the public," he said in a press release. Aside from the two arrests on Sunday, one mainland Chinese man remains at large, police said.
New Straits Times
4 hours ago
- New Straits Times
Bursa CEO: Malaysia's capital market resilient, poised for growth
KUALA LUMPUR: Malaysia's capital market remains resilient and well-positioned for growth, Bursa Malaysia chief executive officer Datuk Fad'l Mohamed said. This is supported by strong fundamentals, proactive policies and rising opportunities in strategic sectors. "The strong momentum of initial public offerings (IPOs) reflects the confidence of Malaysian businesses, as they expand and tap the capital market to power their next phase of growth," he said on the sidelines of Invest Malaysia 2025 series (IM 2025) in Singapore today. As at Aug 1 this year, Bursa Malaysia had 39 IPOs listed, a 39 per cent increase year-on-year compared to the same period in 2024, said Fad'l. It maintained lead position in the Asean region for total number of IPO listings, and total IPOs funds raised," Fad'l said. "This demonstrates a thriving market where companies are growing, creating value and offering opportunities for investment. "As a multi-asset exchange, Bursa Malaysia remains committed to enhancing the vibrancy and depth of our markets, to support Malaysia's economic momentum and propel its competitiveness globally," he added. Investment, Trade and Industry Minister Datuk Seri Tengku Zafrul Abdul Aziz, in his keynote address highlighted that shifting global trade dynamics are reshaping supply chains. This suggests that open economies such as Malaysia and Asean need to be responsive and build resilience. He outlined Malaysia's priorities as Asean chair to strengthen regional resilience and position the region as an investible asset class, while calling for deeper regional economic integration to safeguard the region's growth trajectory in an increasingly fragmented global economy. Tengku Zafrul continued his insights in a fireside chat moderated by Fad'l where the conversation turned to how Asean and Malaysia can navigate external shocks from US-China tariff tensions. He elaborated that there is potential for the region to turn these disruptions into opportunities to position itself as a base for global manufacturers seeking stability and resilience. Malaysia, in particular, has strengthened its edge against regional peers This is supported by disciplined industrial and economic reforms, the development of high-tech hubs in Penang and Kedah, as well as special economic zones aimed at attracting strategic investments in electrical & electronics, EVs, and advanced manufacturing. Tengku Zafrul added that the current period of volatility could serve as a springboard for Malaysia to accelerate its move into higher-value sectors, with the New Industrial Master Plan 2030 (NIMP 2030) providing the long-term policy certainty, targeted incentives, and "safe harbour" measures needed to secure investor confidence. IM 2025 in Singapore is Bursa Malaysia's flagship programme in collaboration with the Macquarie Asean Conference 2025. Since its inception in 2005, Invest Malaysia has expanded its reach globally with 61 Invest Malaysia Away editions hosted in major financial centres worldwide. In 2025 alone, the series made its mark in London (January), followed by the Invest Asean-Malaysia here in June, each reinforcing Malaysia's position as a vibrant and attractive investment destination.
