An international bank is reportedly seeking to reduce its loan exposure to a Hong Kong data center project, reflecting a broader trend of global financial institutions adjusting their credit structures to limit risk in this booming sector.
Banks including Crédit Agricole CIB had provided a loan of 1.6 billion Hong Kong dollars to ESR Group for the development of a data center in Hong Kong. According to sources familiar with the matter, Crédit Agricole CIB now plans to sell approximately 150 million Hong Kong dollars of that loan.
The sources, who requested anonymity as the information is not public, stated that the bank's data center industry lending has reached its internal limit. As a result, it has been recently gauging interest from other financial institutions to acquire the loan portion.
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