KKR is seeking a jumbo loan financing for the buyout of Singapore’s ST Telemedia Global Data Centres (STT GDC), according to three sources familiar.

The loan size is about SGD 5bn (USD 3.8bn), which is equally split into a term loan facility and a revolving credit facility, said the first source.

Natixis and Sumitomo Mitsui Banking Corp are among the banks in talks, said the first two sources. Credit Agricole CIB, DBS Bank, OCBC Bank, Societe Generale, and UOB are also considering joining the loan, said the first source.

KKR aims to close the acquisition by the end of this year, said the second source.

If it completes, the deal will mark Asia Pacific’s largest data centre M&A transaction in 2025.

KKR will partner with Singtel for the outright acquisition, after jointly investing SGD 1.75bn for a minority interest last June. The KKR-led consortium reportedly owns a combined 14% stake in STT GDC.

STT GDC was valued at an approximately 15x EBITDA multiple in the 2024 minority trade, according to one of the sources.

KKR is invested in STT GDC through its second Asia Pacific infrastructure fund (USD 6.4bn, 2024 vintage). The global manager is also invested in Singtel’s regional data centre platform Nxera, the Philippines telecom towers firm Pinnacle Towers, and Malaysian subsea cable provider OMS Group.

KKR is currently fundraising for its third Asia Pacific infrastructure vehicle.

Established in 2014, STT GDC operates over 95 data centres across 11 geographies, including India, Indonesia, Japan, the Philippines, South Korea, Thailand, and Vietnam. Its portfolio has a total IT load capacity exceeding 1.7 GW. It provides colocation, connectivity, and support services.

STT GDC, Natixis, Societe Generale, DBS, KKR, Credit Agricole CIB and OCBC Bank declined to comment. SMBC, Singtel and UOB did not respond to requests for comment by press time.

[Editor’s note: The article has been updated post-publication to note that KKR, Credit Agricole CIB and OCBC declined to comment.]