Adani Connex has set up India’s largest sustainability-linked financing to raise US$1.44 billion. This financing has an initial commitment of US$875 million, which can then be increased to US$1.44 billion under an agreement. This takes Adani Connex’s construction financing pool to Rs 13,700 crore, based on the first construction facility of US$ 213 million executed in June 2023.
The upcoming data centers will use state-of-the-art technology and renewable energy solutions. This will minimize the damage to the environment and will also reduce the cost of running these data centres. The loan received for this project has been linked to the fact that the company will give priority to safety, achieve the lowest energy consumption (PUE) in the world and for this it will adopt best practices from around the world and use renewable energy resources.
A special feature of this financing plan is that it is an innovative guarantee program that works in conjunction with the purchasing strategy of the project. Definitive agreements for the plan have been signed with eight international lenders – ING Bank NV, Intesa Sanpaolo, KfW IPEX, MUFG Bank Limited, Natixis, Standard Chartered Bank, Societe Generale and Sumitomo Mitsui Banking Corporation.
This new approach to financing is an important step towards building sustainable digital infrastructure that will drive economic growth and accelerate India’s digital development.
Jeya Kumar Janakraj, CEO, Adani Connex, said, “This effort has proven the will of all partners to establish a strong and sustainable digital infrastructure. This will also establish new standards. Construction financing is part of Adani Connex’s capital management plan. This will help us in creating environment friendly sustainable data centres. We are very pleased to begin this work together with our international banking partners.”
Many banks have played an important role in this significant task. ING Bank N.V., Intesa Sanpaolo, KfW IPEX, MUFG Bank Ltd., Nautixis, Standard Chartered Bank, Societe Generale and Sumitomo Mitsui Banking Corporation served as lead lenders. ING Bank N.V. And MUFG Bank Limited has played a key role in architecting this deal.
Additionally, ING Bank N.V., MUFG Bank Ltd. and Sumitomo Mitsui Banking Corporation have also served as coordinators to ensure environmental friendliness. The legal advisors to the borrower company were Allen & Overy and Saraf & Partners. At the same time, the legal advisors of the lending banks were Milbank and Cyril Amarchand Mangaldas.
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