AdaniConnex, a 50:50 joint venture between India’s Adani Enterprises and US-based EdgeConneX, has established sustainability linked financing, with the aim to raise as much as US$ 1.44 Billion to walk the talk on a variety of sustainability-related goals.
At present AdaniConnex has one data center operating in Chennai, in the southern Indian state of Tamil Nadu. It also has other facilities in various stages of development in Hyderabad, Mumbai, Pune, NOIDA (near New Delhi) and Vizag. It has ambitious plans to develop 1 GW of data center capacity over the next ten years.
The amount raised using the aforementioned sustainability-linked financing will cater to its upcoming facilities, where the company says it will “employ state-of-the-art technologies and renewable energy solutions to minimise the ecological footprint while optimising operational efficiency.”
In a press release, the company said that the financing has an initial commitment of US$ 875 Million, with an accordion feature to extend commitment up to US$ 1.44 Billion. The transaction elevates AdaniConneX’s construction financing pool to US$ 1.65 Billion, building on the maiden construction facility of US$ 213 Million executed in June 2023.
Jeyakumar Janakaraj, CEO of AdaniConneX said, “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.”
A key feature of the facility is the innovative solution of a syndicated guarantee-backed assurance programme in sync with the projects’ procurement strategy. 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.
