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# Digital Realty Sells €1 Billion Of 5.125% Notes Due 2036, With Proceeds Pledged To Green Projects
- URL: https://www.bullished.co/digital-realty-sells-1-billion-of-5-125-notes-due-2036-with-proceeds-pledged-to-green-7049061e/
- Published: 2026-10-09T20:51:59.000Z
- Updated: 2026-10-09T20:51:59.000Z
- Description: The ten-year euro bond was sold outside the U.S. and is guaranteed by the parent and its operating partnership.
- Author: Matteo Parrino
- Tags: SEC Filings, DLR, Industry: Real Estate

[Digital Realty](https://www.bullished.co/tag/dlr/)'s European finance subsidiary [issued and sold €1 billion](https://www.sec.gov/Archives/edgar/data/0001297996/000119312526419168/d368817d8k.htm?ref=bullished.co) of 5.125% guaranteed notes due 2036 on Friday, according to an 8-K filed with the SEC. The company says it intends to direct an amount equal to the net proceeds to environmental projects.

## What the 8-K says

The issuer is Digital Euro Finco, LLC, a wholly owned indirect finance subsidiary of Digital Realty's operating partnership. The notes are senior unsecured debt, fully and unconditionally guaranteed by Digital Realty Trust, Inc. and the operating partnership.

Initial purchasers paid [99.289% of principal](https://www.globenewswire.com/news-release/2026/10/06/3376134/0/en/digital-realty-announces-pricing-of-1-billion-of-guaranteed-notes-due-2036.html?ref=bullished.co). Net proceeds were about €985.8 million after managers' discounts and estimated offering expenses.

The notes pay interest on October 9 each year, starting October 9, 2027, and mature on October 9, 2036\. They were sold outside the United States under Regulation S and are not registered under the Securities Act.

The issuer can redeem the notes at any time at 100% of principal plus accrued interest and a make-whole premium, a payment that compensates holders for lost interest. That premium drops away for redemptions within 90 days of maturity.

## Where the money goes

Digital Realty said it intends to allocate an amount equal to the net proceeds to finance or refinance "Eligible Green Projects." The list includes renewable energy, energy efficiency, clean transportation, sustainable water management and green building, including development and redevelopment.

Until that allocation happens, the filing allows temporary uses. These include repaying borrowings under the operating partnership's global revolving credit facilities, buying properties or businesses, funding development, and general corporate purposes such as repaying other debt or buying back securities.

The [indenture](https://www.sec.gov/Archives/edgar/data/0001297996/000119312526419168/d368817dex41.htm?ref=bullished.co) limits the company's ability to take on more debt and requires it to maintain a pool of unencumbered assets, meaning assets not pledged as security.

## Default terms and the stock

Events of default that can accelerate maturity include a 30-day lapse on an interest payment and a failure to pay principal when due. Missed payments on other debt above $125,000,000 can also trigger default, as can certain bankruptcy events.

Digital Realty shares closed at $178.76 on Friday, up 1.53%. The filing came after that close, at 4:33 p.m. ET.

The next disclosure to look for is how Digital Realty allocates an amount equal to the €985.8 million of net proceeds between Eligible Green Projects and the temporary uses the filing permits.

### Sources

- [8-K Filing — DIGITAL REALTY TRUST, INC. (DLR)](https://www.sec.gov/Archives/edgar/data/0001297996/000119312526419168/d368817d8k.htm?ref=bullished.co) — SEC EDGAR
- [Exhibit d368817dex41.htm — DIGITAL REALTY TRUST, INC. 8-K exhibit](https://www.sec.gov/Archives/edgar/data/0001297996/000119312526419168/d368817dex41.htm?ref=bullished.co) — SEC EDGAR
- [Digital Realty Announces Pricing of €1 Billion of](https://www.globenewswire.com/news-release/2026/10/06/3376134/0/en/digital-realty-announces-pricing-of-1-billion-of-guaranteed-notes-due-2036.html?ref=bullished.co) — globenewswire.com

### More on Digital Realty Trust

- [Digital Realty's Finance Arm Prices €1 Billion Of 10-Year Notes At 5.125%, Sold Only Outside U.S.](https://www.bullished.co/digital-realtys-finance-arm-prices-1-billion-of-10-year-notes-at-5-125-sold-only-outside-u-6002bcc2/)
- [Digital Realty's Dutch Unit Sells CHF510 Million Of Swiss Franc Notes In Three Maturities](https://www.bullished.co/digital-realtys-dutch-unit-sells-chf510-million-of-swiss-franc-notes-in-three-maturities-3c2c57a8/)
- [Digital Realty Starts Marketing Green-Labeled Euro Notes, Size And Pricing Still Open](https://www.bullished.co/digital-realty-starts-marketing-green-labeled-euro-notes-size-and-pricing-still-open-893d95b7/)

[All Digital Realty Trust (DLR) coverage →](https://www.bullished.co/tag/dlr/)