AdaniConneX, a joint venture between Adani Enterprises (AEL) and EdgeConneX, a data center operator, has agreements in place to finance up to $1.44 billion in financing connected to sustainability. AdaniConneX now has a $1.65 billion construction financing pool, which includes the $213 million it spent on its first construction facility in June 2023.
With an accordion option to extend it up to $1.44 billion, the transaction has an initial commitment of $875 million.
According to a regulatory update, the company has agreements in place for the financing with ING Bank NV, Intesa Sanpaolo, KfW IPEX, MUFG Bank, Natixis, Standard Chartered Bank, Société Générale, and Sumitomo Mitsui Banking Corporation.
This exercise was effective because it demonstrated the parties’ shared commitment to overcoming the difficulties in building a solid and long-lasting digital infrastructure, pushing boundaries and creating new standards for the sector. In order to provide a data center solution that is firmly based in sustainability and environmental stewardship, AdaniConneX CEO Jeyakumar Janakaraj stated that construction financing is a key component of the company’s capital management plan.
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According to AdaniConneX, the financing with a sustainability component demonstrates the company’s dedication to promoting a culture of safety, achieving best-in-class Power Usage Effectiveness (PUE) through the adoption of international best practices, and utilizing renewable energy sources.
A large pool of liquidity is more readily available, which supports the company’s plan to deploy portfolio assets more quickly in line with rising demand. According to it, this funding strategy is a critical first step toward developing long-term digital infrastructure that will drive economic development and quicken India’s digital expansion.
The attorneys representing the borrower were Allen & Overy and Saraf & Partners, while the attorneys representing the lenders were Milbank and Cyril Amarch and Mangaldas.
Two 67 MW data centers—one in Delhi with a capacity of 50 MW and the other in Chennai with a capacity of 17 MW—will be built in the nation by AdaniConneX after it secured $213 million from a number of lenders in June 2023.
