Hogan Lovells advises banks on first euro-based €640 million ABS-transaction backed by data centers

The transaction comprised €640 million in securitized rated term notes (Class A-2 and Class B) and an additional €80 million in unfunded variable funding notes (Class A1). The publicly listed notes were offered under Rule 144A in the US as well as being marketed across Europe. The transaction is structured in accordance with UK, EU and US securitization regulations and qualifies as a green securitization under the ICMA Green Bond Principles. The notes have an anticipated five-year repayment date.

The transaction finances four energy-efficient data centers in Germany – two located in Offenbach, Frankfurt, and two located in Berlin, all of which are leased to hyperscale customers. The deal marks a milestone as the first data center securitization of its kind in the Continental European market, following a well-established trend in the US. It continues the growing number of green securitizations in Europe and the UK, and follows the first UK data center securitization completed last year.

With in-depth industry know-how, Hogan Lovells is highly recognised for advising on data center developments and financings across Europe and globally, and is regularly mandated on pioneering infrastructure transactions and cross-border securitizations. In this matter, the team provided comprehensive legal support to Barclays Bank Ireland Plc. and Deutsche Bank AG across German, English, US, Luxembourg and Dutch law aspects. Hogan Lovells also coordinated with the other joint lead managers and co-managers – ING Bank N.V., Natixis, ABN AMRO Bank N.V., SMBC Bank EU AG, Banco de Sabadell S.A., and Société Générale, London Branch – and supported them on various legal aspects of the transaction, including legal review of documentation.

Hogan Lovells team for Barclays Bank Ireland Plc. and Deutsche Bank AG

Dr. Dietmar Helms (Partner, Frankfurt), Julian Craughan (Partner, London), Sebastian Oebels (Counsel, Frankfurt), Isabel Tinsley (Counsel, London) (all Lead), Yoanna Ivanova (Associate, London) (all Corporate & Finance);

Martin Günther (Partner), Dr. Tim Hinrichsen (Senior Associate) (both Real Estate, Munich); 

Ariane Mehrshahi (Partner), Valerie Laskowski, Agnes Merz (both Senior Associates) (all Corporate & Finance, Luxembourg);

Dr. Heiko Gemmel (Partner), Vanessa Rinus (Senior Associate) (both Tax, Dusseldorf); 

Gérard Neiens (Partner), Jean-Philippe Monmousseau (Counsel) (both Tax, Luxembourg);

Robert Masman (Partner), Viney Moerliesing (Associate) (both Corporate & Finance, Amsterdam);

Emil Arca (Partner), Lauren Kimmel (Senior Associate) (both Corporate & Finance, New York).