Hillhouse Investment is in talks with banks for a loan of about US$600 million (S$772 million) to finance its investment in DayOne Data Centers and to refinance existing debt, according to reports from June and today [1, 2]. The loan is proposed to have a three-year term with an interest margin near 500 basis points over the US Secured Overnight Financing Rate (SOFR) [1, 2].
Hillhouse and Coatue Management led DayOne’s Series C funding round, which closed at US$4.5 billion earlier in June 2026, boosting Hillhouse’s stake in the company to approximately 19% on a non-diluted basis, up from around 18% after the 2024 Series A financing [1, 2].
DayOne operates large-scale data centers across Singapore, Malaysia, Indonesia, Thailand, Hong Kong, Tokyo, and Finland, expanding its footprint in major Asian and European markets [1, 2]. The company plans to increase its Malaysian business loan facility up to US$7 billion to support growth initiatives [1, 2].
Negotiations for the new Hillhouse loan remain at an early stage but may include a greenshoe option, allowing the lender to raise additional capital beyond the original loan amount [1, 2].
There are differing reports on DayOne’s initial public offering plans: some sources say DayOne targets raising up to US$5 billion via IPOs in Singapore and the US, while others report a potential US IPO valuing the company as high as US$20 billion [1, 2].
The loan talks surfaced initially in mid-June 2026 ahead of the Series C financing close [1, 2]. The finalization of the loan deal will determine Hillhouse’s financing strategy for DayOne moving forward.
DayOne’s next significant milestone will be any formal decision and announcement on its IPO plans, alongside the conclusion of the loan negotiations currently underway.
