Latest news with #Vantage
CNBC
6 days ago
- Business
- CNBC
How Vantage created a new asset class for European investors to gain exposure to cloud and AI data centers
A notable bond deal earlier this month not only provided hundreds of millions of euros to Vantage Data Centers but also created a new asset class for investors across Europe and a blueprint for similar companies to follow. Denver-based Vantage raised 720 million euros ($820 million) through the continent's first euro-denominated bond deal backed by its German data center assets, including an option to tap an additional 80 million euros. The asset-backed securitization (ABS) arrangement followed a similar £600 million deal ($840 million) in the U.K. last year. Both transactions, engineered by investment bankers at Barclays, do more than bankroll the company's growth. The deals, put together by law firms Clifford Chance and Hogan Lovells, have enabled European investors to gain direct exposure to the growth in cloud computing and artificial intelligence for the first time. Asset-backed securitization In an ABS, a company borrows money by issuing bonds against a pool of expected income from underlying assets as collateral. For data centers, the "assets" include the physical infrastructure — large facilities, cooling systems and power grids — along with long-term lease agreements with tenants, who in the case of Vantage were large cloud providers known as "hyperscalers." The stable cash flows that data centers typically generate are highly attractive to bond investors and allow operators like Vantage Data Centers to secure cheaper, fixed-rate financing to pay off more expensive construction loans. The bank loans are then recycled as investments into new projects. For Vantage, this model is central to its growth strategy. "The ABS, or securitization market, is the North Star from a financing perspective for this asset class," said Sharif Metwalli, Vantage's chief financial officer. "We are replicating the success we've had in North America in [Europe], and the plan is to do the same in other regions." Traditional bank financing might face limitations given the scale and pace of current expansion. The global data center market was valued at $195 billion in 2022 by real estate specialists CBRE. Consultants at McKinsey project that this will grow at a compounded annual growth rate of about 20% until 2030. The timeline for those forecasts is also being accelerated by the joint venture between Oracle , OpenAI, and Japan's Softbank, which announced a $500 billion investment over the next four years to build data centers to host AI supercomputers known as "Stargate." Given the backdrop, Vantage, through its British pound and euro-denominated deals, not only lowered its cost of borrowing but also effectively created a new asset class for institutional investors to gain exposure to this rapid growth. "I think it takes a player such as Vantage, who are familiar with the benefits of data centers, as well as public ABS issuances from the US, to be a pioneer for the market in Europe and introduce that type of financing," said Michael Nartey, who leads the structuring team at Barclays Investment Bank, which was behind both deals. The sheer growth, he noted, meant the industry "can't continue to just be financed by the private markets." Deal details Entry into Europe wasn't without its share of hurdles. The lack of comparable transactions historically meant the company and its investment banks, which also included Deutsche Bank on the German deal, had to undertake considerable investor education. The first U.K. transaction, which concluded in June 2024, took over nine months to execute, largely because of the intense "investor education process" required. "A lot of investors were very keen to understand the asset class, but didn't have much background on how, or even what, a data centre was," Nartey told CNBC. However, by the time of the German deal, investors reportedly began asking the "pertinent and more important questions" rather than just the fundamental "education-based questions," indicating increased familiarity with the asset class. Aside from the need to convince investors, concerns from rating agencies had to be resolved ahead of any bond issuance. Emma Matebalavu, a partner at law firm Clifford Chance that represented Vantage, explained that, unlike a typical European real-estate bond deal, Vantage's ABS structure required the bond-issuing entity itself to own the data-center properties. That required intricate legal work to ring-fence the assets within an existing business. Dietmar Helms, a partner at Hogan Lovells who advised Barclays, noted that for the German deal, a "bespoke" solution was needed to meet German real estate laws and tax rules while satisfying rating agencies that investors will not be faced with a sudden tax charge and dent their returns. "Every time that you sell a property, like a piece of land with a building, usually you pay a certain percentage of the value to the tax office," Helms explained. "A deal like this should be structured in a way that minimises the relating risks to give investors enough comfort on the robustness of the structure, because otherwise, the deal would just not make sense from an economic point of view." 'First-mover premium' This early move in Europe also came with a "first-mover premium" — a higher rate demanded by investors, given the lack of precedent. "The reason for this slight premium on spreads versus other comparable North American ABS transactions is really driven solely by relative liquidity in the market and general investor education," said Rich Cosgray, senior vice president of global capital markets at Vantage Data Centers. However, the company indicated more favorable terms were achieved — a drop of about 15 basis points above benchmark rates — in its second transaction in Germany, as an indicator of investors becoming more comfortable with this type of bond. "I would argue that data center issuance has become less of an 'esoteric' asset class in the US, given how many issuers are now accessing the market," Cosgray added. "We're still early in [Europe, the Middle East and Africa], but the liquidity is growing." What's in it for investors? Under the ABS structure, the creditworthiness of the tenants is paramount, as the bond's coupon payments are reliant on them. The four Vantage facilities in the German deal are fully leased to three hyper-scale companies, all rated AA- or higher, with the largest holding a coveted AAA rating, according to a note from Scope Ratings. The two recent European deals also borrow ideas from their previous U.S. transactions. For instance, the "soft bullet" style, whereby bonds are repaid within five years even though they mature decades later, is a feature of deals on both sides of the Atlantic. That meant that Vantage was able to attract its traditional U.S. investor base to its European issue. Vantage said the latest transaction also helped it broaden its European investor base. "We saw a lot more European dedicated insurance capital, fund managers, ABS buyers, come into this deal," Cosgray said. "The liquidity that we're expanding in this market is real securitization depth for European investors." The structure of the German deal also evolved from the U.K. deal by offering investors two tranches of debt: a senior Class A note rated A- and a smaller, subordinated Class B note rated BBB-. Both notes are considered investment grade by Scope. "I don't think investors view the credit risk for the B notes relative to A notes as significant but they're getting a better coupon," said Metwalli, Vantage's CFO. He highlighted that investors received a 65-basis-point pickup in yield for what could be perceived as only a marginal increase in risk with the Class B notes, which were four times oversubscribed. Vantage's foray into European ABS comes at a challenging time for the market. Data compiled by JPMorgan points to 57 billion euros of issuance so far in 2025, on track for a steep decline from the 140 billion euros raised in 2024. Analysts point to macroeconomic uncertainty as being largely responsible for the lack of deal-making. Growth The deals are designed keeping Vantage's global expansion in mind. The company also operates in major data center hubs in Dublin, Milan, Warsaw, Johannesburg and Zurich. Its footprint also spans the Asia-Pacific region, with facilities in Malaysia, Australia, Japan, Hong Kong and Taiwan. Vantage is now "very eager" to bring the same securitization model to its other markets, Cosgray added. He suggested the company is more likely to issue debt in local currency in those regions and will begin the process by the end of next year. Julian Craughan, a partner at Hogan Lovells, who advised Barclays, suggested there was scope for greater flexibility in future deals as other data-center operators enter the securitized debt market in Europe. "Investors have got one deal under their belt in continental Europe," said Craughan. "There is scope for further innovation in the future, for example we may be able to build these [ABS deals] out to include data centers in multiple jurisdictions as collateral as we see in the US market."
Wales Online
6 days ago
- Automotive
- Wales Online
Huge former Ford site in Wales set to be transformed with 600 jobs created
Huge former Ford site in Wales set to be transformed with 600 jobs created The long-term development take shape over the next 15 years The now-closed Ford site in Bridgend (Image: Getty Images ) Plans to turn a former car engine factory into a new data centre have been submitted to the local council. The plans were first put forward by US-based Vantage Data Centres in 2024 and could see the construction of a new data centre campus on the site of the former Ford engine plant in Waterton, Bridgend. The facility was closed by Ford in September 2020 after 40 years of operations in a move which was described at the time as a major blow for workers in the area. However, the site could soon see a new long-term development take shape if approved by the local planning authority, with a new data centre which would be used by large companies to store, process, and manage large amounts of data. If given the green light by council bosses it could eventually see a cluster of 10 centres built at the site just two miles away from Bridgend town centre along with three substations and a series of roads, landscaping, paths and parking areas to connect the development. The company already operates a similar data centre in Newport and held feedback events and a public consultations to get feedback from local residents before the plans were handed in earlier this month. The large blue oval sign was synonymous with Bridgend (Image: Jacob King/PA Wire ) Article continues below They read: "Since its closure in September 2020, the redevelopment of the BEP site has been a local and regional priority. "Vantage's proposal matches that ambition and will help to deliver it. The data centre campus proposes the transformation of the whole site, with Vantage acting as owner, developer and operator of the project. "Whilst a data centre campus is clearly a high value economic development, a scheme of this scale is rare." It adds that the proposed Bridgend Campus would be roughly four times the capacity and size of the Newport site once fully up and running with as many as 600 well paid jobs expected as a result. It is also estimated to generate around £8.3 million per year in business rates for Bridgend County Borough Council. The current application covers the outline plans for the overall data campus along with a full application for the first of the buildings, which it hopes to start early in 2026. Article continues below Plans say the wider site would be developed over three phases with the whole of the campus expected to be built up over the next 15 years subject to approval and conditions. The first stages could begin after works to demolish the former Ford facility, with approval already granted to remove above-ground structures and remaining equipment along with the removal of any slab and underground structures. For the latest Bridgend news sign up to our newsletter here.
Yahoo
13-06-2025
- Business
- Yahoo
Tech execs enlist in Army Reserve for new innovation detachment
Four Silicon Valley technology executives from major companies are joining the U.S Army Reserve as officers to inject the speed and expertise of commercial technology development into military innovation through the newly established Detachment 201, an Executive Innovation Corps, the service announced Friday. The Pentagon has long turned to civilian experts for technological insight, from World War II-era scientists to modern advisory boards like the Defense Innovation Board. Detachment 201 takes the desire to collaborate with the high-technology industry to a new level: embedding senior tech execs directly into the Army Reserve as uniformed officers. Those first Army Reserve lieutenant colonels, who will be sworn in today are Shyam Sankar, Palantir's chief technology officer; Andrew Bosworth, chief technology officer of Meta; Kevin Weil, OpenAI's chief product officer; and Bob McGrew, an advisor at Thinking Machines Lab and former chief research officer for OpenAI, the Army statement lists. 'Their swearing-in is just the start of a bigger mission to inspire more tech pros to serve without leaving their careers, showing the next generation how to make a difference in uniform,' the statement reads. In their roles in Det. 201, 'they will work on targeted projects to help guide rapid and scalable tech solutions to complex problems,' the Army said. 'By bringing private-sector know-how into uniform, Det. 201 is supercharging efforts like the Army Transformation Initiative, which aims to make the force leaner, smarter and more lethal.' Army Secretary Dan Driscoll unveiled the initiative last month in a memo to the force laying out major changes to the command structure, formation make-up, canceling programs deemed out of the scope of the Army's desired modernization pathway, and accelerating programs the service wants in order to become a more lethal and agile force. The executives come from companies who have been entrenching themselves in military technology development. After a rough start, Palantir has been a cornerstone of Army modernization for years, providing everything from an intelligence analytics system called the Distributed Common Ground System-Army to its Vantage data platform, which is under a contract and supports 100,000 users, to its Titan system that gives the service deep-sensing and sensor-fusion capabilities. Palantir, along with a variety of other major companies like Google and Anduril, is also working with the Army as it develops a new command-and-control architecture from the ground up. OpenAI and Meta have also pivoted to embrace military applications. OpenAI has partnered with Anduril on artificial-intelligence-enhanced air-defense systems, for example. Meta has also begun partnering with other companies like Anduril to work on AI tools for the military. Thinking Machines Lab, which employs a large number of former OpenAI developers including its co-founder, was established earlier this year. Its foundational focus is human-AI collaboration, a key necessity for the Army as it works on how to best integrate humans with machines on the battlefield in a meaningful way.
Korea Herald
12-06-2025
- Business
- Korea Herald
Vantage to Exhibit at Money Expo Colombia 2025
PORT VILA, Vanuatu, June 12, 2025 /PRNewswire/ -- Vantage Markets is proud to announce its participation as a major exhibitor at the upcoming Money Expo Colombia 2025, one of Latin America's most anticipated financial events. Now in its second edition, the event is expected to draw between 5,000 and 7,000 attendees across two days from 25–26 June, taking place at the Centro de Convenciones Ágora Bogotá. As part of its continued commitment to innovation, Vantage will host the largest booth at the event, having combined Booths 11 and 18 to create an immersive and interactive space. The expanded presence reflects Vantage's ongoing mission to provide attendees with the most engaging and informative expo experience possible. Attendees can look forward to thought leadership sessions from three of Vantage's experts. On the main stage, Alejandro Zelniker, Affiliate and Partner Specialist, will deliver a timely presentation titled: "When Do You Earn More? Investing During Market Chaos or Calm?". His session will explore trading psychology, market cycles, and common approaches to managing portfolios during periods of volatility. On the panel stage, Rodrigo Martínez, Team Lead of Business Development, will contribute to the discussion: "Inside the Broker's Toolbox: What Every Trader and Investor Should Know.". Rodrigo will offer expert insights into the evolving toolkit that brokers offer to traders, from technology infrastructure to analytics and customer service innovations. Lastly, Julio Vasquez, Business Development Manager will participate in a panel discussion on "Mastering Risk: Strategies for Resilience in Unpredictable Markets". With volatility as the new normal, Julio will share his perspective on how he identifies, quantifies and manage risk across asset classes. Marc Despallieres, CEO of Vantage Markets, shared his thoughts ahead of the event: "LATAM is one of the most dynamic and fast-growing regions for financial innovation, and Money Expo Colombia offers a valuable platform to engage with industry participants across the region. Vantage is proud to have a significant presence at the expo— reflecting our ongoing commitment to supporting the broader financial community within the industry." With the event positioned as the second largest in the Money Expo LATAM series, following Money Expo Mexico, Vantage's expanded booth and expert-led sessions are set to be notable features of the summit. Visit Vantage Markets, for more information about Vantage Markets and our initiatives. About Vantage Vantage Markets (or Vantage) is a multi-asset CFD broker offering clients access to a nimble and powerful service for trading Contracts for Difference (CFDs) products, including Forex, Commodities, Indices, Shares, ETFs, and Bonds. With over 15 years of market experience, Vantage transcends the role of broker, providing a reliable trading platform, an award-winning mobile trading app, and a user-friendly trading platform that provide clients access to trading opportunities. trade smarter @vantage RISK WARNING : CFDs are complex instruments and carry a high risk of losing money rapidly due to leverage. Ensure you understand the risks before trading. Disclaimer: This article is provided for informational purposes only and does not constitute financial advice, an offer, or solicitation of any financial products or services. The content is not intended for residents of any jurisdiction where such distribution or use would be contrary to local law or regulation. Readers are advised to seek independent professional advice before making any investment or financial decisions. Any reliance you place on the information presented is strictly at your own risk.
Korea Herald
12-06-2025
- Business
- Korea Herald
Vantage Debuts at Wealth Expo Perú 2025 Showcasing Industry Expertise
PORT VILA, Vanuatu, June 12, 2025 /PRNewswire/ -- Vantage Markets is pleased to announce its inaugural participation in Wealth Expo Perú 2025, a notable financial industry events in the region. The event will take place at the prestigious Westin Hotel in San Isidro, the heart of Lima's financial district, bringing together traders, investors, fintech experts, and financial service providers for a full day of knowledge-sharing, networking, and industry discussion. Marking its first-ever appearance at the Peruvian edition of Wealth Expo, Vantage will present its innovative solutions and engage with attendees from the trading and affiliate community. The company's participation will include three speaking sessions led by members of its expert team: Rodrigo Martínez, Team Lead of Business Development, will deliver a keynote on "Vantage: Smart Copy Trading Within Everyone's Reach" – a deep dive into Vantage's intuitive and accessible copy trading platform. He will also join other industry experts on a panel discussing key trends, challenges, and developments within the evolving financial ecosystem in Peru and the wider region. In the workshop track, Julio Vásquez, Business Development Manager, will share insights during his talk: "How to Turn Your Trading and Community into a Passive Income Machine". To kick off the summit in style, Vantage will sponsor an exclusive cocktail reception the evening before the main event. This private gathering will welcome attendees with warm hospitality and an opportunity to connect with the Vantage team in a relaxed setting. Marc Despallieres, CEO of Vantage Markets, shared: "We are pleased to participate in Wealth Expo Perú, an important event within Latin American's growing financial landscape. The region continues to show significant interest in trading and innovation, and we look forward to engaging with industry partners and stakeholders. Through education, technology, and trust, Vantage remains committed to supporting the evolving financial ecosystem." Vantage's growing presence reflects its ongoing commitment to making financial markets more accessible, transparent, and rewarding for traders of all experience levels. For more details on Vantage's initiatives and events, visit Vantage Markets. Vantage Markets (or Vantage) is a multi-asset CFD broker offering clients access to a nimble and powerful service for trading Contracts for Difference (CFDs) products, including Forex, Commodities, Indices, Shares, ETFs, and Bonds. With over 15 years of market experience, Vantage transcends the role of broker, providing a reliable trading platform, an award-winning mobile trading app, and a user-friendly trading platform that provide clients access to trading opportunities. trade smarter @vantage RISK WARNING: CFDs are complex instruments and carry a high risk of losing money rapidly due to leverage. Ensure you understand the risks before trading. Disclaimer: This article is provided for informational purposes only and does not constitute financial advice, an offer, or solicitation of any financial products or services. The content is not intended for residents of any jurisdiction where such distribution or use would be contrary to local law or regulation. Readers are advised to seek independent professional advice before making any investment or financial decisions. Any reliance you place on the information presented is strictly at your own risk.
