AdaniConneX To Raise Sustainability-Linked Financing Up To $1.44 Billion

With this funding, AdaniConneX will increase its construction financing pool to $1.65 billion, adding on to the maiden construction facility of $213 million, committed earlier in June 2023

AdaniConneX, a joint venture between Adani Enterprises and EdgeConneX, announced on Sunday that it will raise sustainability-linked financing up to $1.44 billion. The Adani Group said that the financing will involve an initial commitment of $875 million, with the provision of extending the funding up to $1.44 billion. 

With this funding, AdaniConneX will increase its construction financing pool to $1.65 billion, adding on to the maiden construction facility of $213 million, committed earlier in June 2023, the conglomerate said. The entity plans to use this funding to develop sustainable digital infrastructure to cater to the growing demand.

As part of the development, the entity will build data center facilities with state-of-the-art technologies and renewable energy solutions to reduce the ecological footprint and achieve optimum 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,” the group said. 

The entity has executed definitive agreements with eight international lenders, namely, ING Bank NV, Intesa Sanpaolo, KfW IPEX, MUFG Bank Ltd., Natixis, Standard Chartered Bank, Société Générale, and Sumitomo Mitsui Banking Corporation.

Elaborating on the development, Jeyakumar Janakaraj, CEO, AdaniConneX, said, “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. 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.”

“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. 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,” the joint entity noted.