AdaniConneX a joint venture between Adani Group and EdgeConneX, has obtained a loan of approximately $800m from a syndicate of overseas banks to support the construction of a data centre in the Indian state of Andhra Pradesh, according to sources with knowledge of the matter, reported Bloomberg.
The 18-month loan is structured as a bridge facility and was provided by lenders including Mitsubishi UFJ Financial Group, DBS Group Holdings, Singapore’s Clifford Capital, ING Bank, Intesa Sanpaolo and Natixis, the people said.
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The all-in cost of the loan is around 200 basis points over the Secured Overnight Financing Rate (SOFR).
Sources indicated that this cost is lower than the 250 basis points previously paid by AdaniConneX on a six-year loan earlier in 2024, as per Bloomberg-compiled data.
The bridge loan is expected to be refinanced into longer-term debt at a later stage.
Funds from the new facility are set to be used primarily for developing a data centre project in the Indian state, as Adani Group steps up its investment in digital infrastructure.
The group has outlined plans to spend up to $100bn on data centres and broader digitalisation by 2035.
The progress in Adani’s data centre funding coincides with the dismissal of US securities and wire fraud charges against Adani Group founder Gautam Adani and his nephew Sagar by a US District Judge in New York earlier this week.
The closing of the case marks a positive turn for the group, which had faced prolonged legal proceedings from the start of 2024.
An Adani Group spokesperson did not respond to a request for comment. ING Bank, DBS, MUFG and Clifford Capital also declined to comment, while Natixis and Intesa did not reply to emailed queries.
