‘The market has spoken’: DBS CEO Tan Su Shan says market is repricing AI financing risks
She notes that weaker firms may see their credit ratings revised downwards
DBS CEO Tan Su Shan has stated that the market is currently assessing and reevaluating the risks associated with investments in AI-related projects. In an interview with Bloomberg Television, Tan emphasized that the market is "speaking" and has begun to demand higher returns and more stringent structures for these financing arrangements.
This shift in market perception is beneficial, as it ensures that the funds allocated to the AI capital expenditure ecosystem generate long-term returns that can be repaid to debt, bond, or equity holders, according to Tan.
The Singaporean bank, which is the largest in Southeast Asia, has originated approximately S$25 billion (US$20 billion) worth of AI deals so far in 2026, primarily acting as a lead manager on syndicated loans. Tan explained that a significant portion of these funds has been allocated to hardware investments, encompassing semiconductors, memory chips, and data centers. She highlighted that these financing efforts are mostly for hardware, from semiconductors and memory chips to data centres.
According to Tan, weaker firms may see their credit ratings revised downward due to this reassessment of AI financing risks. However, she emphasized that this risk repricing is "healthy" as the market seeks to ensure that substantial financial commitments remain sustainable in the long run.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
