ING Bank of the Netherlands plans to divest approximately $500 million in data-center loans in a single transaction, Bloomberg reports. The bank has launched a competitive tender for roughly a dozen loans; bids on the individual assets are due by November 19, and the minimum bid size is $10 million.
ING declined to comment to Reuters on the report.
Contents of the package
According to Bloomberg, the portfolio includes a $25 million loan tied to a large New Mexico data center. That facility is part of Stargate, a joint venture building AI infrastructure backed by OpenAI, SoftBank Group and Oracle.
The package also contains loans related to major data-center operators such as Vantage Data Centers and CyrusOne.
Market context and timing
The bank’s move comes after a sharp market sell-off that hit semiconductor makers and next-generation cloud providers particularly hard. The report links the market rout to the Democrats’ decisive wins in US midterm elections, which prompted investor concern over potentially tougher regulation of the technology sector.
As a result of the market downturn, the aggregate market capitalization of S&P 500 companies fell by about $3 trillion. Shares of data-center operators including Applied Digital, Cipher Digital and IREN each dropped by more than 14%.
Why it matters
Selling the loan package suggests ING is trimming exposure to a sector facing heightened volatility and regulatory uncertainty. The portfolio’s mix of loan sizes gives investors and specialist lenders an opportunity to acquire targeted exposure to data-center financing.
Details about purchasers and final terms are expected to emerge through the competitive process.
The cover image is illustrative. This article is not investment advice.
