ING leads groundbreaking USD 875 million sustainability-linked financing for AdaniConneX data centres in India, with an accordion feature to extend commitment up to USD 1.44 billion

Singapore/India, 29 April 2024 – ING, in its role as Mandated Lead Arranger, Structuring Bank and Sustainability Coordinator, is delighted to announce the arrangement of a US$875 million sustainability-linked loan (SLL) for AdaniConneX, a joint venture between Adani Group and EdgeConneX. This financing sets a new benchmark for India’s data centre sector as the largest amount raised for a data centre project in India and marks the first use of an SLL in the country’s data centre sector. The financing has an initial commitment of USD 875 million, with an accordion feature to extend commitment up to USD 1.44 billion.

The financed project involves the development of three state-of-the-art data centres in Pune and Hyderabad, aiming to deliver a combined capacity of 144 MW. This initiative is part of AdaniConneX’s broader strategy to establish 1 GW of data centre capacity across India by 2030, positioning the joint venture as a leader in India’s burgeoning digital infrastructure space.

ING, alongside MUFG and SMBC who also served as Sustainability Coordinators, assisted AdaniConneX to integrate rigorous sustainability benchmarks and ambitious key performance indicators (KPIs) as part of the SLL. The loan is linked to three critical KPIs that are relevant to the data centre sector: energy efficiency, renewable energy adoption, and safety standards. This approach underlines AdaniConneX’s commitment to supporting sustainable and responsible infrastructure development, which is pivotal as India advances its digital economy.

Anju Abrol, CEO and head of Wholesale Banking APAC at ING, commented “ING is delighted to act as Sustainability Coordinator, Structuring Bank and Mandated Lead Arranger in AdaniConneX’s first sustainable financing. The groundbreaking Sustainability-Linked Loan will support AdaniConneX in transforming India into a global data centre hub and is well aligned with their sustainable growth ambitions. At ING, we want to create a positive impact in the net-zero transition and are proud to partner with AdaniConneX to set a new industry standard in a growing digital infrastructure market.”

Jugeshinder (‘Robbie’) Singh, Group CFO, Adani and CFO, Adani Enterprises Limited, commented “At AdaniConneX, we are committed to sustainably managing our ESG footprint through innovation in energy efficiency and storage while also leveraging our global expertise in leading renewable energy platforms. We are delighted to have partnered with ING to deliver AdaniConneX’ Capital Management Plan through execution of this landmark sustainability linked financing, which is the first of its kind in the India data centre space. This transaction supports our vision in establishing 1 GW data centre capacity in India by 2030, while aligning strongly to our ESG ambitions to address pressing environmental concerns through actionable sustainability objectives as we scale.”

This financing exemplifies ING's ongoing commitment to sustainability, placing it at the forefront of sustainable financing initiatives globally. By ensuring that the financed projects not only comply with but exceed current environmental and safety standards, ING aims to promote a sustainable model of technological growth.

This deal reinforces ING’s leadership in sustainable finance and its dedication to funding projects that offer significant social and environmental benefits and builds on ING's reputation of launching the world's first SLL in April 2017. Since then, ING mobilized over €115 billion in sustainable finance globally in 2023, making substantial progress towards its goal of mobilizing €125 billion annually by 2025.

Society is transitioning to a low-carbon economy. So are ING’s clients, and so is ING. The bank finances a lot of sustainable activities, but still finances more that’s not. See how ING is progressing on Opens in a new tabing.com/climate.