AdaniConneX secures India’s largest sustainability-linked financing for data center expansion
AdaniConneX, a joint venture between Adani Enterprises and EdgeConneX, has achieved a significant milestone in securing India’s largest sustainability-linked financing, amounting to up to USD 1.44 billion. This strategic financial move, which includes an initial commitment of USD 875 million and an option to extend up to USD 1.44 billion, marks a pivotal moment in the expansion of sustainable digital infrastructure in India. The financing elevates AdaniConneX’s construction financing pool to USD 1.65 billion, supplementing a previous facility of USD 213 million obtained in June 2023.
The new funding will support the construction of state-of-the-art data center facilities that leverage renewable energy solutions to minimize environmental impact while optimizing operational efficiency. This initiative underscores AdaniConneX’s commitment to incorporating global best practices for Power Usage Effectiveness (PUE) and enhancing safety protocols within its operations.
A notable aspect of this financing is the syndicated guarantee-backed assurance program, tailored to align with the procurement strategies of the projects. Definitive agreements have been signed with eight international lenders, including prominent institutions such as ING Bank N.V., Intesa Sanpaolo, KfW IPEX-Bank, MUFG Bank Ltd., Natixis, Standard Chartered Bank, Société Générale, and Sumitomo Mitsui Banking Corporation. These partnerships are instrumental in accelerating the implementation of AdaniConneX’s asset portfolio in response to the growing demand for digital services.
Jeyakumar Janakaraj, CEO of AdaniConneX, highlighted the significance of the financing: “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,” he stated. “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.”
The transaction saw ING Bank N.V. and MUFG Bank Ltd serving as Structuring Banks, with additional roles in sustainability coordination by ING, MUFG, and Sumitomo Mitsui Banking Corporation. Legal advisement was provided by Allen & Overy and Saraf & Partners for the borrower, with Milbank and Cyril Amarchand Mangaldas representing the lenders.
This financing arrangement sets a new benchmark in the development of digital infrastructure that is both sustainable and capable of supporting India’s rapid digital transformation. By focusing on sustainability and efficiency, AdaniConneX is not only addressing immediate operational needs but also contributing to long-term environmental goals.