Digital Realty Subsidiary Raises €1 Billion With 5.125% 2036 Notes

In an October 6, 2026 announcement datelined Austin, Texas, Digital Realty said that Digital Euro Finco, LLC, a wholly owned indirect finance subsidiary of the company’s operating partnership, Digital Realty Trust (DLR ), L.P., priced an offering of €1 billion aggregate principal amount of 5.125% Guaranteed Notes due 2036 at a price of 99.289% of the principal amount. The announcement describes Digital Realty as “the world’s largest cloud- and carrier-neutral data center platform.”

The Euro Notes will be senior unsecured obligations of Digital Euro Finco, LLC and will be fully and unconditionally guaranteed by Digital Realty and the operating partnership. Interest on the notes will be payable annually in arrears at a rate of 5.125% per annum from and including October 9, 2026, and the notes will mature on October 9, 2036. Closing of the offering is expected to occur on October 9, 2026, subject to the satisfaction of customary closing conditions.

The company said it intends to allocate an amount equal to the net proceeds from the offering to finance or refinance, in part or in full, new and/or existing projects consistent with Digital Realty’s Green Bond Framework, including the development and redevelopment of such projects. According to the release, pending that allocation all or a portion of an amount equal to the net proceeds may be used to temporarily repay borrowings outstanding under the operating partnership’s global revolving credit facilities, acquire additional properties or businesses, fund development opportunities, invest in interest-bearing accounts and short-term, interest-bearing securities consistent with the company’s intention to qualify as a REIT for U.S. federal income tax purposes, and provide for working capital and other general corporate purposes, including potentially the repayment of other debt or the redemption, repurchase, repayment or retirement of outstanding equity or debt securities.

Green Bond Framework

On its green bond page, Digital Realty describes itself as a leading issuer of green bonds and states that since 2015 it has completed the allocation of $8.5 billion in green bonds supporting green buildings, renewable energy and energy efficiency throughout its global data center portfolio. The page states that the company’s Green Bond Framework is aligned with the International Capital Market Association’s Green Bond Principles and with the UN Sustainable Development Goals. As a prior example, the company states that its September 2024 green bond allocation of €848,665,500 supported the development of six projects that meet LEED, BREEAM or G-SEED standards for environmental performance.

The Green Bond Framework, most recently revised October 6, 2022, sets out eligible green project categories that include renewable energy; energy efficiency projects that improve or are expected to improve the energy efficiency of a building, a building subsystem or equipment by at least 10 percent; and green buildings that have received, or are expected to receive, certification under specified third-party standards, including LEED Silver, Gold or Platinum and BREEAM Very Good, Excellent or Outstanding, or data centers with a design average annual Power Usage Effectiveness of 1.40 or better. Under the framework, Digital Realty commits to tracking the use of net proceeds and to having an external auditor verify the proceeds allocated to eligible green projects, and the remaining balance of unallocated proceeds, on an annual basis until the net proceeds have been fully allocated. The framework also commits the company to annual reporting until allocation has been fully completed, covering the list of projects financed, the allocation of proceeds by category, the compliance of selected projects with the eligibility criteria, and the certification levels attained. The company states it will strive to fully allocate proceeds to eligible projects by the third anniversary of a bond issuance, though it may extend or modify that timeframe as market conditions warrant. DNV Business Assurance USA, Inc. was engaged to assess the framework and, in a second-party opinion dated October 7, 2022, concluded that the framework is aligned with the ICMA Green Bond Principles.

The pricing announcement came the same day as a separate Digital Realty announcement that Digital Constellation B.V., an indirect wholly-owned finance subsidiary of the operating partnership, closed an offering of CHF510 million of Swiss bonds comprising CHF225 million of 1.6803% Swiss bonds due 2029, CHF185 million of 2.0600% Swiss bonds due 2032 and CHF100 million of 2.4150% Swiss bonds due 2036. The Swiss bonds are senior unsecured obligations of Digital Constellation B.V., fully and unconditionally guaranteed by the company, the operating partnership and Digital Intrepid Holding B.V., an indirect wholly-owned holding and finance subsidiary of the operating partnership. The company said net proceeds from that offering are likewise intended for projects consistent with the Green Bond Framework.

Distribution Restrictions

The Euro Notes are being sold only outside the United States in reliance on Regulation S under the U.S. Securities Act of 1933, as amended. The notes have not been and will not be registered under the Securities Act and may not be offered or sold in the United States or to U.S. persons absent registration or an applicable exemption from registration requirements. The notes are not intended to be offered, sold or otherwise made available to any retail investor in the European Economic Area or the United Kingdom, and no key information document required under the EU PRIIPs Regulation or the UK PRIIPs Regulation has been prepared. The manufacturer target market under MiFID II and UK MiFIR product governance is eligible counterparties and professional clients only, across all distribution channels, and the release states that relevant stabilization regulations, including FCA/ICMA, apply.

The release identifies statements related to the timing and consummation of the offering and the expected use of the net proceeds as forward-looking, and states that the company can provide no assurances that it will complete the offering on the anticipated terms, or at all. For a description of related risks and uncertainties, the release points to the company’s Annual Report on Form 10-K for the year ended December 31, 2025 and its Quarterly Reports on Form 10-Q for the quarters ended March 31, 2026 and June 30, 2026.