Malaysian data center operators could tap offshore US dollar bond market for funding soon as local banks get more selective amid larger deal sizes, according to S&P Global Ratings. But, Malaysian banks are not approaching their sectoral or single borrower exposure yet because data center exposure only accounts for 1 per cent of total loans currently, Nikita Anand reportedly said recently. Nikita, who’s the director of financial institutions ratings was speaking during S&P Global Ratings’ Spotlight on Emerging Markets webinar recently.
However, he cautioned smaller banks with smaller capital base might face constraints in lending should their exposure nears the exposure limits.
According to the credit ratings agency, Malaysia’s overall data center capacity is projected to more than triple by 2030, requiring over US$20 billion in investment over the following three years.