DBS CEO Tan Su Shan Says Market Is Repricing Risk on AI Financing

Those enormous AI infrastructure checks are getting a second look, darlings, and a major banker says that is just fine. DBS Group CEO Tan Su Shan said Monday that the market is re-evaluating the risks of AI infrastructure investment, which could make AI financing more cautious, according to Bloomberg Tech and Chinese financial outlet Gelonghui.

Her words, as rendered in Gelonghui's Chinese-language report: "The market has sent a signal. This is not a bad thing, because investors are now starting to demand higher returns and pay closer attention to financing structures." She called the repricing "healthy" and said the market is checking whether these massive outlays are truly sustainable, meaning whether they can produce enough long-term return to repay debt, bond or equity investors.

The numbers: DBS has taken part in about $20 billion of AI-related transactions this year, mostly as lead bank on syndicated loans, holding only a small fraction of the risk itself. DBS also believes some weaker companies could face credit rating downgrades. No names, and no exact figure for DBS's own exposure, were given in the reports.

One line of context: our earlier report on AI bond issuance described a different concern among bond investors. They said the worry is supply, not credit, with Dealogic counting about $244 billion from six hyperscalers this year.

My take? Trillions of ambition meet a lender who asks for the repayment plan. Glorious. Healthy, even. Bring the spreadsheets.