Société Générale has sought to offload as much as $300m of loans tied to Stargate, one of the largest data center development initiatives in the US, according to 9fin sources.
A person who viewed the offering said the Paris-based bank is asking 95 cents on the dollar for the debt, while another source said the bank had rejected a bid in the 80s — a suggestion the bank is willing to sell at a discount, but not fire-sale rates.
The attempted sale is the latest example of how lenders have struggled to offload billions of dollars of loans tied to AI infrastructure projects, after heavy issuance in recent months followed by a Democratic sweep in the US mid-term elections. A slew of votes to limit data center development in the midterm elections earlier this month have also stoked investors’ concerns that the AI buildout could be complicated by community pushback or new regulations.
SocGen is looking to sell up to $150m of debt it holds against a data center campus being built in Shackelford County, Texas, and another, similar-sized slice of debt connected to a project in Port Washington, Wisconsin, according to the sources.
A spokesperson for SocGen declined to...
