What is the main purpose of the Euro Notes offering?

The primary stated intention is to allocate the net proceeds from the offering to finance or refinance new and/or existing Eligible Green Projects, which include initiatives focused on sustainability such as renewable energy, energy efficiency, and green building.

Who is issuing the Euro Notes and who is guaranteeing them?

The Euro Notes are being issued by Digital Dutch Finco B.V., an indirect wholly owned finance subsidiary of Digital Realty Trust, Inc.'s operating partnership. The notes will be fully and unconditionally guaranteed by Digital Realty Trust, Inc. and its operating partnership.

Where are these Euro Notes being offered?

The Euro Notes are being offered only outside the United States in reliance on Regulation S under the Securities Act of 1933. They have not been registered under the Securities Act and cannot be offered or sold within the U.S. or to U.S. persons without registration or an applicable exemption.

What happens to the proceeds if they are not immediately used for green projects?

Pending allocation to Eligible Green Projects, the net proceeds may be used for various purposes including temporarily repaying borrowings under credit facilities, acquiring properties or businesses, funding development opportunities, investing in interest-bearing accounts and short-term securities (consistent with REIT status), and for general corporate purposes such as repaying other debt or retiring equity/debt securities.

DIGITAL REALTY TRUST, INC. 8-K SEC Disclosure

Summary

Digital Realty Trust, Inc. (DLR) announced on September 9, 2024, that its indirect wholly owned finance subsidiary, Digital Dutch Finco B.V., has commenced an offering of Euro-denominated Guaranteed Notes. These senior unsecured notes will be fully and unconditionally guaranteed by DLR and its operating partnership, indicating strong financial backing for the issuance. The offering is being conducted outside the United States under Regulation S and is subject to market and other customary closing conditions. The company has stated its intention to allocate the net proceeds from this offering primarily to finance or refinance eligible green projects. These include initiatives related to renewable energy, energy efficiency, pollution control, sustainable land/water management, clean transportation, and green building projects. Pending allocation to these green projects, proceeds may be temporarily used for repaying credit facilities, acquisitions, funding development, or for general corporate purposes including other debt repayment. This move signals DLR's commitment to sustainability financing and potentially to strengthening its balance sheet.

Key Highlights

1Commencement of offering for Euro-denominated Guaranteed Notes by subsidiary Digital Dutch Finco B.V.
2Notes are senior unsecured obligations, fully and unconditionally guaranteed by Digital Realty Trust, Inc. and its operating partnership.
3Offering is conducted outside the United States under Regulation S.
4Intention to use net proceeds for financing/refinancing Eligible Green Projects (renewable energy, energy efficiency, etc.).
5Pending allocation, proceeds may be used for debt repayment, acquisitions, development funding, or general corporate purposes.
6Consummation of the offering is subject to market and other customary conditions.

DIGITAL REALTY TRUST, INC. 8-K Report, Corporate Update (Sep 9, 2024)

Summary

Key Highlights

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