Infratil will raise about $1 billion to strengthen its balance sheet and fund expansion plans at its CDC data centre business, marking yet another major transaction for the capital-intensive data centre industry.

Barrenjoey, Goldman Sachs and UBS led the deal, which included a fully underwritten placement of roughly $NZ1 billion ($928 million) in new shares and a $NZ150 million retail offering. Both were sold for $NZ10.15 apiece, a near 7 per cent discount to Infratil’s share price last Friday.