Singapore-based data center platform STT GDC Pte Ltd (STTGDC) is in discussions with banks for a S$3.1 billion (US$2.4 billion) syndicated loan which will be used to finance its assets, according to Bloomberg today citing people familiar with the matter. The banks involved are Standard Chartered plc, United Overseas Bank Ltd, Oversea-Chinese Banking Corp and DBS Bank Ltd, acting variously as global coordinators, mandated lead arrangers and bookrunners.
The three-year loan comes with an option to extend for up to two years and has an interest margin of 165 basis points over the benchmark Singapore Overnight Rate Average.
In September, KKR & Co and Singapore Telecommunications Ltd together with other firms, completed their acquisition of STTGDC for S$6.6 billion. Earlier, DBS, OCBC and UOB participated in a S$5 billion sustainability-linked loan for the purchase.
None of the participating banks agreed to comment nor respond to a request for comment.
The proposed loan came amidst a debt binge among data center players worldwide which is seeing signs of a slowdown judging by last Friday’s Nasdaq tech stocks plunge. Since 2025, AI loans have exceeded US$ 650 billion, according to data compiled by Bloomberg. The investment is expected to reach US$3 trillion over the next five years, according to Moody’s Ratings.
STTGDC is one of the largest data center operators in Asia with footprint across 12 countries including India, South Korea, Japan and Malaysia, UK, Germany and Italy.