Summary

  • Digital Euro Finco completed a €1bn, 5.125% note issue on 9 October 2026, due in 2036 and fully and unconditionally guaranteed by Digital Realty Trust, Inc. and Digital Realty Trust, L.P., according to the closing 8-K.
  • The 99.289% issue price and approximately €985.8m net proceeds are distinct measures. An amount equal to net proceeds is intended for eligible green projects, but the filing provides no project allocation or timetable and permits broad interim corporate uses.
  • Debt limits and an unencumbered-asset covenant address credit discipline, not environmental delivery. The 30 June portfolio figures provide context, not evidence of which maturities this euro issue refinances.

What closed—and what it costs

The 9 October Form 8-K reports that Digital Euro Finco, LLC issued and sold €1.000bn principal of 5.125% Guaranteed Notes maturing on 9 October 2036. They are senior unsecured obligations of the finance subsidiary, supported by the two guarantees—not debt secured against a named data centre.

This completed funding event supersedes the conditional status in the 6 October pricing release, which expected a 9 October close subject to customary conditions. Its 99.289% issue price is a percentage of principal, not the amount ultimately available after deductions. The closing filing reports approximately €985.8m net proceeds after discounts and estimated expenses. That net amount, rather than the €1bn face value, sets the intended allocation reference.

Interest is payable annually on 9 October, beginning in 2027. Face value multiplied by the coupon produces €51.25m annually, before fees and other financing effects. This arithmetic is not an all-in effective borrowing cost.

Eligible does not mean allocated

Digital Realty intends to finance or refinance eligible green projects with an amount equal to net proceeds. The 8-K lists renewable energy, energy efficiency, pollution prevention and control, sustainable management of living natural resources and land use, biodiversity, clean transportation, sustainable water and wastewater, climate adaptation, and green buildings. These are categories, not identified investments.

The filing names no project, assigns no project-level amount, supplies no issue-specific environmental outcome and sets no allocation timetable. These are limits of this filing, not assertions about every other company document. The equal-amount formulation does not itself establish that subscription cash is segregated for a particular asset.

Pending allocation, an equivalent amount may temporarily support revolving-credit repayment, acquisitions, development, permitted interest-bearing accounts or securities, working capital and other general corporate purposes, including debt or equity retirement. Permission is not evidence that any particular interim use has occurred.

For data-centre investors, this distinction prevents funding availability from being mistaken for construction or operating delivery. Creditors can identify the borrower and guarantors now; neither that identification nor the eligible-category list establishes new capacity or quantified emissions reductions.

Credit context, not a refinancing map

Additional-debt limits and an unencumbered-asset pool covenant provide financial constraints. They do not create a lien on a named facility or demonstrate environmental allocation. The payment claim and the project-use intention answer different questions.

At 30 June 2026, before this offering, the Form 10-Q filed on 31 July reported $18.768bn principal debt, $18.635bn carrying value, a 4.4-year weighted-average term to initial maturity and a 2.99% portfolio effective interest rate. Principal maturities in 2027, 2028 and 2029 were $2.165bn, $2.530bn and $3.601bn respectively: approximately $8.296bn combined.

Those dollar-denominated portfolio measures are not like-for-like comparators for a new ten-year euro note. Currency, measurement date, maturity mix and coupon versus effective-rate measurement differ. The evidence does not establish lower financing costs or that this issue retires those maturities.