Milbank advises on USD $1.44 billion AdaniConneX data deal
Milbank LLP has represented the finance parties in a substantial financing deal valued at up to USD $1.44 billion for AdaniConneX's portfolio of hyperscale data centres to be constructed in India.
The financing package for the data centre portfolio includes an initial USD $875 million in loan commitments. Additionally, the financing facility features an accordion provision, enabling loan commitments to be increased up to USD $1.44 billion. This transaction is notable for being the largest sustainability-linked data centre financing in India. It incorporates margin adjustments based on the achievement of key performance indicators related to power usage effectiveness, renewable electricity usage, and safety goals.
The facility also incorporates several innovative elements, including a syndicated guarantee-backed assurance programme designed to support the projects' procurement strategy. This demonstrates a growing trend in linking financing terms to sustainability credentials within the infrastructure sector.
AdaniConneX is a joint venture between Adani Enterprises and EdgeConneX. The joint venture aims to expand digital infrastructure in India, which is experiencing significant growth in demand for data storage and processing capabilities.
James Orme, Global Project, Energy and Infrastructure Finance partner at Milbank, commented on the transaction: "We're thrilled to facilitate this landmark, sustainable financing to empower digital growth in India." He further noted the firm's commitment to fostering digital infrastructure financing and development in South Asia and other regions.
The group of lenders for this transaction includes prominent financial institutions such as ING Bank, Intesa Sanpaolo, KFW Ipex-Bank, MUFG Bank, Natixis, Standard Chartered Bank, Societe Generale, and Sumitomo Mitsui Banking Corporation. The participation of these institutions indicates strong investor confidence in the project and the overall potential for digital infrastructure in India.
Mr. Orme led the Milbank team responsible for advising the lenders, with support from special counsel Rosaline Yusman and associates Zhen Yang Kua, Deirdre Swift, and Wei Sheng Lee. The team's expertise and collaborative efforts were instrumental in navigating the complexities of the financing deal.
The joint venture's focus on sustainability highlights a broader shift in the industry toward integrating environmental considerations into large-scale infrastructure projects. This move aligns with global efforts to mitigate climate change by adopting greener technologies and practices.
