AI debt concerns grow as ING reportedly seeks buyers for $500 million of data center loans
CNBC · Hugh Leask ·
ING is reportedly seeking bids for about $500 million across 12 data center loans, including debt tied to a New Mexico Stargate site.
ING is reportedly seeking buyers for a portfolio of 12 data center loans worth around $500 million, joining a broader push by banks to distribute credit risk tied to the artificial intelligence infrastructure build-out.
The auction is said to include a $25 million piece linked to the Stargate project in New Mexico, which involves OpenAI, SoftBank and Oracle, as well as certain other loan assets involving Vantage Data Centers and CyrusOne, Bloomberg reported Friday, citing people familiar with the matter.
ING will hold a bids-wanted-in-competition, or BWIC, auction process, with bids sized at $10 million or more due by Nov. 19, according to Bloomberg. A BWIC is a competitive process for investors to bid on pieces of a loan portfolio.