AdaniConneX Parter To Build Sustainability-Linked Data Centers

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AdaniConneX, a joint venture (JV) between Adani Enterprises and EdgeConneX, established sustainability-linked financing to raise to USD 1.44 billion. The financing has an initial commitment of USD 875 million, with the feature to extend the commitment up to USD 1.44 billion.

This transaction can help elevate AdaniConneX’s construction financing pool to USD 1.65 billion and build on the maiden construction facility of USD 213 million executed in June 2023. The upcoming data center facilities can employ technologies and renewable energy solutions to minimize the ecological footprint and optimize operational efficiency. The sustainability-linked financing reinforces AdaniConneX’s commitment to driving a safety-first culture, delivering world-class power usage effectiveness (PUE) by adopting global best practices and leveraging renewable energy resources.

A key feature of the facility is the guarantee-backed assurance program which is in sync with the projects’ procurement strategy. The company executed definitive agreements with eight international lenders – ING Bank N.V., Intesa Sanpaolo, KfW IPEX, MUFG Bank Ltd., Natixis, Standard Chartered Bank, Société Générale and Sumitomo Mitsui Banking Corporation.

Access to a wide pool of liquidity strengthens the company’s strategy to fast-track the implementation of portfolio assets in sync with accelerating demand. This transformative approach towards financing is a significant step towards building sustainable digital infrastructure that will fuel economic progress and accelerate India’s digital growth.

“This successful exercise is a testament to the collective resolve of the parties to meet the challenges of establishing sustainable and robust digital infrastructure, thereby pushing norms and setting new industry benchmarks,” said Jeyakumar Janakaraj, CEO of AdaniConneX, “Construction financing is a core element of the AdaniConneX capital management plan, enabling us to deliver a data center solution firmly rooted in sustainability and environmental stewardship. We are delighted to embark on this journey alongside our esteemed international banking partners.”

ING Bank N.V., Intesa Sanpaolo, KfW IPEX, MUFG Bank Ltd., Natixis, Standard Chartered Bank, Société Générale and Sumitomo Mitsui Banking Corporation acted as Mandated Lead Arrangers. ING Bank N.V. and MUFG Bank Ltd acted as Structuring Banks whereas ING Bank N.V., MUFG Bank Ltd, and Sumitomo Mitsui Banking Corporation acted as Sustainability Co-coordinators. Allen & Overy and Saraf & Partners were the borrower’s counsels. The lenders’ counsels were Milbank and Cyril Amarchand Mangaldas.