LEI: 213800T8RBBWZQ7FTF84

22 March 2022

Cordiant Digital Infrastructure Limited

Trading Update

Cordiant Digital Infrastructure Limited (the "Company" or "Cordiant Digital"), an investor in the core digital infrastructure that enables modern communications and the internet, announces an update on its acquisition of Emitel, operational performance of CRA, sales progress at DataGryd, and an update on its pipeline.

Emitel

Emitel is a multi-asset digital infrastructure business based in Poland. It operates a network of communication towers, fibre-optics and a nationwide sensor network, serving major utilities. Cordiant Digital has received anti-trust approval from the Polish authorities for the acquisition of Emitel S.A. ("Emitel"), announced in January 2022. This represents an important step in a multi-stage government and regulatory approvals process.

Following the invasion of Ukraine by Russian troops, the Polish Zloty has weakened against the Pound and has shown increased volatility.  Consequently, the Company is in the process of implementing a prudent currency risk management strategy.

Emitel and CRA are supporting the delivery of television and radio channels in Ukrainian across their respective geographies, in order to provide Ukrainian refugees with important updates on the Russian invasion, administrative information and entertainment. Cordiant Digital's assets do not have any commercial exposure to Ukraine, Belarus or Russian counterparties.

DataGryd

Since completing the acquisition of leading US interconnect data centre operator, DataGryd, in January, new Heads of Sales and Marketing have joined the team. In the few weeks since the acquisition, the qualified pipeline of new sales opportunities has increased by ca. 85%, a reflection of the new ownership stability at the company. In addition, the marketing team is in the midst of a comprehensive corporate rebranding that reflects the strategic interconnect nature of the asset.

Progress on the sales front underscores the value of already announced plans to deploy US$75m in expanding the facilities.  This will be undertaken on a phased basis over the coming quarters reflecting Cordiant Digital's "buy, build & grow" model.

CRA

CRA - which operates over 660 towers, 6 edge data centres, 3730 kilometres of fibreoptic network and a nationwide Internet of Things networks, serving major utilities - continues to generate new sales opportunities across its various business lines.  For example, it recently signed a 10 year network backbone contract extension, secured an expansion of data centre services to a major retailer and is experiencing strong customer interest related to 5G rollout on its mobile towers.

Pipeline and Acquisition Finance

Cordiant Digital's pipeline of qualified opportunities has continued to grow, and now exceeds EUR 3 billion. Geographically this pipeline (which is, as expected, well diversified by infrastructure category) is roughly equally split between North America and Western Europe.

In order to support this pipeline, Cordiant Digital has advanced conversations with lenders regarding a structured acquisition facility. 

Cordiant Digital Portfolio & Inflation

Cordiant Digital offers investors a strong and diversified collection of cash-flowing digital assets in the US and Europe, with an aggregate enterprise value on closing of Emitel exceeding ca. GBP 1.1 billion.  In Management's view, these assets often offer protection against inflation through price escalators embedded in long-term contracts, many of which are with blue-chip customers.

-ENDS-

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Notes to Editors:

Cordiant Digital Infrastructure Limited primarily invests in the core infrastructure of the digital economy - data centres, fibreoptic networks and broadcast and telecommunication towers - "the plumbing of the internet" - in the UK, Europe and North America. Further details of the Company can be found on the Company's website at www.cordiantdigitaltrust.com.

Cordiant Capital Inc., the Company's investment manager, is a sector-focused investment manager with particular expertise and experience in digital infrastructure. Cordiant invests in global infrastructure and real assets, running infrastructure private equity and infrastructure private credit strategies through limited partnership funds and managed accounts. Cordiant's current client base consists of global insurance companies, pension plans and family offices.