AdaniConneX inks $1.44 b sustainability-linked financing

AdaniConneX, a joint venture between Adani Enterprises and EdgeConneX, will raise to $1.44 billion through a sustainability-linked construction financing framework, the company said in a release.

Definitive agreements have been executed 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.

The financing has an initial commitment of $875 million, with an accordion feature extending the commitment to $1.44 billion. In June 2023, the equal joint venture had raised $213 million through a similar construction financing facility.

Key feature

A key feature of the facility is the syndicated guarantee-backed assurance programme in sync with the projects’ procurement strategy. The funds raised will be used for the company’s upcoming data centres.

The upcoming data centre facilities will employ renewable energy solutions to minimise the ecological footprint while optimising operational efficiency. The company said that the sustainability-linked financing reinforces its commitment to driving a safety-first culture, delivering world-class power usage effectiveness by adopting global best practices and leveraging renewable energy resources.

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, it added.

“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,” said Jeyakumar Janakaraj, CEO, AdaniConneX.

ING Bank N V, Intesa Sanpaolo, KfW IPEX, MUFG Bank, Natixis, Standard Chartered Bank, Société Générale and Sumitomo Mitsui Banking Corporation acted as mandated lead arrangers. ING Bank NV and MUFG Bank acted as structuring banks whereas ING Bank NV, MUFG Bankand S umitomo Mitsui Banking Corporation acted as sustainability co-ordinators, the release said.

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