AdaniConneX, a 50:50 joint venture between Adani Enterprises and EdgeConneX, has established India's largest sustainability linked financing to raise up to $1.44 billion.
In a press release on Sunday, AdaniConnex said the financing has an initial commitment of $875 million, with a feature to extend commitment up to $1.44 billion.
The transaction takes AdaniConneX's construction financing pool to $1.65 billion, building on the maiden construction facility of $213 million executed in June 2023.The upcoming data centre facilities will employ state-of-the-art technologies and renewable energy solutions to minimise the ecological footprint while optimising operational efficiency.
The release said that definitive agreements have been executed with eight international lenders - ING Bank N.V., Intesa Sanpaolo, KfW IPEX, MUFG Bank Ltd., Natixis, Standard Chartered Bank, Societe Generale and Sumitomo Mitsui Banking Corporation.
"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 centre 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, Societe Generale 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-ordinators.
Allen and Overy and Saraf and Partners were the borrower's counsels. The lenders' counsels were Milbank and Cyril Amarchand Mangaldas.