A Wall Street Mystery Seller Is Now Trying to Dump $500 Million of Data Center Loans
The sale includes a $25 million Stargate-linked piece as banks seek to spread AI infrastructure credit risk.
- ING is auctioning 12 data-center loans worth about $500 million, including a $25 million piece linked to the Stargate project in New Mexico involving OpenAI, SoftBank, and Oracle; bids are due by Nov 19.
- Banks are distributing credit risk as fears grow over soaring debt and potential construction moratoriums following the Democrats' election win, which sent AI-related stocks into a free fall on Nov 5 with the Nasdaq Composite Index closing down 5.5%.
- Pruksa Iamthongthong, head of APAC equities at Aberdeen Investments, said Democrats' gains have increased concerns around greater scrutiny of data-center development; Oracle dropped 6.93% and CoreWeave fell 9.83% on Nov 5.
- Hank Calenti, global markets strategist at SMBC, stated that buyers for these assets can range from private credit investors through asset managers to insurers seeking higher returns; investment banks utilize a lend-to-distribute model.
- JPMorgan Chase and Morgan Stanley explored reducing lending exposures to data-center construction this year through private debt sales and significant risk transfers to investors, freeing up balance sheet capacity amid broader industry debt reduction strategies.
12 Articles
12 Articles
A Wall Street Mystery Seller Is Now Trying to Dump $500 Million of Data Center Loans
A dozen AI data center loans hit the block at once, and one slice traces back to a Stargate site where Oracle issued a force majeure notice. Bids close soon, and the results could reveal whether lenders are losing their nerve.
ING Bank to offload $500 million data centre loan portfolio amid AI sector volatility
Dutch banking giant ING is seeking to offload a portfolio of data centre loans valued at approximately $500 million, signalling a strategic shift in its exposure to the high-growth but capital-intensive AI infrastructure sector. According to reports, the bank has initiated a "bids-wanted-in-competition" process for a dozen loans, with a minimum bid size set at $10 million. Of particular significance is a $25 million loan linked to a large-scale …
Dutch bank ING would divest itself of a data center loan portfolio worth about $500 million in a single step, according to Bloomberg.
A portfolio of approximately $500 million in loans for data centers was put on sale at one time, in an unusual auction that takes place a few days after a significant victory by the Democrats in the US mid-term elections raises doubts about the future of various projects. The seller, whose identity has not been revealed, is receiving proposals for a dozen loans through a process known as bids-wanted-in-competition (BWIC), according to people fam…
ING Moves to Dump $500 Million in Data Centre Loans as AI Investment Risks Mount
Dutch banking group ING is looking to sell a portfolio of data centre loans worth approximately $500 million as it reassesses its exposure to the artificial intelligence infrastructure sector. The bank has reportedly launched a competitive bidding process covering 12 loans, with prospective buyers required to submit offers of at least $10 million. Bids are […]
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