ING Puts $500 Million Data Center Loan Portfolio Up for Sale

Netherlands-based banking group ING has offered for sale a portfolio of data center loans worth approximately $500 million. The transaction stands out as one of the bank's steps to reduce its credit exposure to the data center sector. The portfolio includes a $25 million loan associated with the Stargate artificial intelligence infrastructure project backed by OpenAI, SoftBank, and Oracle. This loan constitutes one of the bank-sourced debt items in the financing structure of the AI infrastructure venture. The sale of data center loans on the secondary market aims to manage concentration risk on banks' balance sheets and improve capital efficiency. ING's move reflects the role of banks in financing increasing investments in AI infrastructure and the risk-sharing trends in this area. The size and content of the portfolio offered for sale serve as an indicator of the financing needs of the data center sector as well as how banks manage their credit positions in this area. No announcement has yet been made regarding the buyer side or final terms of the transaction. Not investment advice.