Scala Data Centers is preparing to make its debut in the international bond market when the opportunity arises to finance its ongoing expansion beyond Brazil, CEO Marcos Peigo told Latin Finance.
The São Paulo-based company is already working on obtaining the credit ratings required to offer bonds abroad, although there is no imminent deal in the pipeline, he said in an interview.
Peigo was speaking after Scala issued its fourth debenture in the Brazilian market — the third in a row that was structured under the firm’s ESG framework — to finance the development of its data centre business in the country.
The BRL1.4 billion ($255 million), six-year deal was more than three times oversubscribed, which “has been the case with all our green debentures so far,” Peigo said in the interview.
The sale proceeds will be used to build a 36MW data centre in Tamboré, in the state of São Paulo. The next step will be a new project to allow the facility to generate its own renewable energy.
Peigo said that the data center business is capital intensive, and the firm has “stubbornly” looked at the domestic market to raise the funds for investment, raising BRL4.4 billion ($800 million) with the first three green debentures.
LOWER RATES
But Scala, which was founded in 2019, also wants to be ready to be able to access other sources of financing as US interest rates decline and it pursues opportunities to develop its business abroad.
“To access global markets, it is necessary to go through an education process so the market gets to know the company,” Peigo said. “Eventually, we will be able to choose between an infrastructure debenture or an international bond among a range of possibilities.”
The firm is already tapping international funds to develop its business in Chile, where the company has one site in operation and two under construction.
CFO Clayton Malheiros said that four international banks are vying for the opportunity to structure project finance for the company in Chile.
“We will probably keep two or three of them,” he said. “Negotiations are well advanced, and we are already in the stage of discussing contract details.”
Scala also has data centers in Mexico and Colombia and is analyzing the best funding options for developing its presence in those countries, Malheiros said.
