AdaniConneX, a joint venture between Adani Enterprises (AEL) and data centre operator EdgeConneX, has entered into agreements to raise sustainability-linked financing of upto $1.44 billion. This elevates AdaniConneX’s construction financing pool to $1.65 billion, including its maiden construction facility of $213 million, which was executed in June 2023.
The financing has an initial commitment of $875 million, with an accordion feature to extend it upto $1.44 billion.
The firm has entered into agreements with ING Bank NV, Intesa Sanpaolo, KfW IPEX, MUFG Bank, Natixis, Standard Chartered Bank, Société Générale and Sumitomo Mitsui Banking Corporation for the financing, it said in a regulatory update.
“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. Construction financing is a core element of the AdaniConneX capital management plan, enabling us to deliver a data centre solution firmly rooted in sustainability and environmental stewardship,” AdaniConneX CEO Jeyakumar Janakaraj said.
The sustainability-linked financing reinforces AdaniConneX’s commitment towards driving a safety-first culture, delivering world-class Power Usage Effectiveness (PUE) by adopting global best practices, and leveraging renewable energy resources, it said.
An 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 approach towards financing is a significant step towards building sustainable digital infrastructure that will fuel economic progress and accelerate India’s digital growth, it added.
Allen & Overy and Saraf & Partners were the borrower’s counsels, while Milbank and Cyril Amarchand Mangaldas were the lenders’ counsels.
In June 2023, AdaniConneX had raised $213 million from a clutch of lenders to set up two data centres of 67 MW capacity – one with 50 MW capacity in Delhi and another with a 17 MW in Chennai – in the country.