AdaniConneX raises $1.44bn from 8 global banks, sets benchmark with construction financing framework

New Delhi: AdaniConneX, a joint venture equally owned by Adani Enterprises and EdgeConneX that is building data centres, secured India's largest sustainability-linked financing arrangement, raising up to USD 1.44 billion (around Rs 11,520 crore), the company said on Sunday.

Adani Enterprises Ltd, the flagship of billionaire Gautam Adani-run conglomerate, is investing around USD 1.5 billion on its fledgling data centre business in the next three years. Its joint venture with EdgeConnex plans to build nine data centres with a total capacity of 1 gigawatt by 2030 to provide infrastructure for the booming digital services demand.

In a statement, the firm said the "financing has an initial commitment of USD 875 million, with an accordion feature to extend commitment up to USD 1.44 billion." "The transaction elevates AdaniConneX's construction financing pool to USD 1.65 billion, building on the maiden construction facility of USD 213 million executed in June 2023," it said.

AdaniConnex, which has only one operational data centre in Chennai so far, has completed almost two-thirds of the construction in the Noida and Hyderabad facilities.

"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 sustainability-linked financing reinforces AdaniConneX's commitment towards driving a safety-first culture, delivering world-class Power Usage Effectiveness (PUE) by adopting global best practices, and leveraging renewable energy resources," it added.

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 NV, Intesa Sanpaolo, KfW IPEX, MUFG Bank Ltd, Natixis, Standard Chartered Bank, Societe Generale, and Sumitomo Mitsui Banking Corporation.

"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," the statement said.

This transformative approach towards financing is a significant step towards building sustainable digital infrastructure that will fuel economic progress and accelerate India's digital growth.

"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 AdaniConneX CEO Jeyakumar Janakaraj.

"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 NV, 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 NV and MUFG Bank Ltd acted as Structuring Banks whereas ING Bank NV, MUFG Bank Ltd and Sumitomo Mitsui Banking Corporation acted as Sustainability coordinators.

Allen & Overy and Saraf & Partners were the borrower's counsels. The lenders' counsels were Milbank and Cyril Amarchand Mangaldas.