AdaniConneX establishes sustainability-linked financing of up to $1.44 billion from eight international lenders
Upstox
2 min read • Updated: April 29, 2024, 11:44 AM
Summary
AdaniConneX said the financing has an initial commitment of $875 million and can be extended to $1.44 billion. The firm stated that the transaction elevates its construction financing pool to $1.65 billion, building on the maiden construction facility of $213 million executed in June 2023.
AdaniConneX, a 50:50 joint venture (JV) between Adani Enterprises and EdgeConneX, said on Saturday it has established a sustainability-linked financing to raise up to $1.44 billion.
The financing has an initial commitment of $875 million and can be extended to $1.44 billion. The firm stated that the transaction elevates AdaniConneX’s construction financing pool to $1.65 billion, building on the maiden construction facility of $213 million executed in June 2023.
AdaniConneX said that eight international lenders including ING Bank NV, Intesa Sanpaolo, KfW IPEX, MUFG Bank, Natixis, Standard Chartered Bank, Société Générale, and Sumitomo Mitsui Banking Corporation participated in the sustainability-linked loan facility.
The firm said its upcoming data center facilities will employ state-of-the-art technologies and renewable energy solutions to minimise the ecological footprint while optimising operational efficiency, it said.
ING Bank NV, Intesa Sanpaolo, KfW IPEX, MUFG Bank, Natixis, Standard Chartered Bank, Société Générale and Sumitomo Mitsui Banking Corporation acted as the mandated lead arrangers. ING Bank NV, and MUFG Bank acted as structuring banks whereas ING Bank NV, MUFG Bank, and Sumitomo Mitsui Banking Corporation acted as sustainability co-ordinators.
The company said that Allen & Overy and Saraf & Partners were the borrower’s counsels while Milbank and Cyril Amarchand Mangaldas were the lenders’ counsels.
Janakaraj, CEO of AdaniConneX said that construction financing is a core element of the company’s capital management plan enabling it to deliver a data centre solution rooted in sustainability and environmental stewardship.
Adani Enterprises had earlier announced a 7% year-on-year (YoY) rise in its third quarter consolidated total income at ₹28,827 crore. Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 89% YoY to ₹3,717 crore while net profit grew 130% YoY to ₹1,888 crore.
Shares of Adani Enterprises have gained nearly 6% since the beginning of the year. The stock has risen nearly 61% in the last one year.