AdaniConneX, the joint venture (JV) between Adani Enterprises and EdgeConneX, is set to raise up to $1.44 billion in sustainability-linked financing.
The JV, which was formed to develop data centers across India, will use the funding for future data center facilities. The deal will bring its financing pool to a total of $1.65bn, following a $213 million raise conducted in June 2023.
The funding has an initial commitment of $875m, which can be increased to $1.44bn, and is tied to sustainability goals. The JV says has committed to the facilities having "world-class" power usage effectiveness (PUE) ratings.
Thus far, definitive agreements have been signed with ING Bank N.V., Intesa Sanpaolo, KfW IPEX, MUFG Bank Ltd., Natixis, Standard Chartered Bank, Société Générale and Sumitomo Mitsui Banking Corporation to contribute to the fundraising.
“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 Jeyakumar Janakaraj, CEO of AdaniConneX. “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.”
Allen & Overy, and Saraf & Partners acted as counsels to AdaniConneX. Milbank and Cyril Amarchand Mangaldas acted as counsels to the lenders.
In January of this year, it was reported that AdaniConneX was seeking a $400m loan to build data centers.
The joint venture was first announced in February 2021. The two companies expressed a goal of delivering 1GW of hyperscale data center capacity throughout India.
Since then, the JV has launched a data center in Chennai with the first phase offering 17MW. At full build-out, the campus will reach 33MW. The company is currently working on facilities in Noida - where the construction site recently had a small fire - Vizag, Hyderabad, Pune, and Mumbai.
In April 2024, The company acquired a 25-acre plot of land for $56.5m to build a data center in Pune, India.
In January 2023, Adani shared that it was planning to spin off the JV data center firm before 2028.
2023 saw Adani come under fire after short-seller Hindenburg Research published an investigation alleging stock manipulation, accounting fraud, and money laundering. The conglomerate denied the claims.
Following the Hindenburg Research report, Adani's share value dropped dramatically, from 3,824.25 INR ($45.81) to a low of 1,315.65 INR ($15.76). It has since recovered to 3,074.55 INR ($36.83).
