Digital Realty, rated Baa2/BBB/BBB, has hired Bank of America and Deutsche Bank to run the deal, which could come as soon as Wednesday.
The issuer is looking at printing 2.75, 5.5 and 10 year maturities, with the 10 year bonds expected to be green bonds.
This will be likely be the first multi-tranche deal of the year for Europe’s high grade corporate market and bankers will be eagerly watching to see how much demand falls in each tranche. At the end of last year, investors and some bankers said that buyers were looking to reduce duration in their high grade corporate bond portfolios.
Digital Realty will be the second US company to visit the euro market this week, after consumer food firm General Mills printed €600m of six year debt on Tuesday.
Last October, Digital Realty agreed an all share merger with Dutch competitor Interxion in a deal that valued the European target company at an enterprise value of around $8.4bn. At the time, the company said it was going to refinance the cost of the merger in the bond market as well as other available financings.