DBS, OCBC, UOB Join S$5B Sustainability-Linked Loan to Back Singtel-KKR Acquisition of STT GDC

Singapore's three major banks — DBS, OCBC, and UOB — have jointly committed to a S$5 billion sustainability-linked loan to support the acquisition of ST Telemedia Global Data Centres (STT GDC) by Singtel and U.S. investment firm KKR. The financing underscores growing lender confidence in the long-term prospects of digital infrastructure and the data center industry, which is expanding rapidly amid rising global demand for cloud computing, artificial intelligence, data storage, and connectivity services.

In a joint statement released on Monday (August 31), the three banks said they have each made substantial commitments to the facility, acting alongside other lenders as mandated lead arrangers, bookrunners, and sustainability-linked loan coordinators. The financing structure incorporates two key sustainability performance targets aligned with STT GDC's environmental goals: increasing the share of renewable energy in total electricity consumption and raising the proportion of green data centers within the company's portfolio.

STT GDC's sustainability targets reinforce its broader commitment to supporting the transition toward a low-carbon digital economy. Headquartered in Singapore, STT GDC is one of the fastest-growing data center operators globally, with a presence across 20 major markets in Asia-Pacific, the UK, and Europe. The company is well positioned to meet rising demand for AI, cloud computing, and other high-compute workloads, which continue to drive significant capacity requirements across its footprint.

STT GDC was previously a subsidiary of ST Telemedia, a wholly owned entity of Temasek Holdings. In February of this year, a consortium formed by Singtel and KKR agreed to acquire the remaining 82% stake in STT GDC for S$6.6 billion, marking one of Southeast Asia's largest data center transactions to date and Singapore's biggest merger and acquisition deal in four years. Upon completion of the transaction, KKR and Singtel will hold 75% and 25% stakes in the company, respectively.

The participation of all three local banks in this landmark financing highlights the strategic importance of data center infrastructure to the region's digital economy and signals sustained institutional appetite for sustainability-linked structures in large-scale infrastructure deals.