Nebius Secures $3.5 Billion Senior Secured Facility from Citi for Data Centers and GPU Purchases

What happened

Amsterdam-based AI cloud company Nebius (Nasdaq: NBIS) announced on October 22 that it had entered into a $3.5 billion senior secured financing facility provided by Citi. Citi acted as mandated lead arranger, agent and security agent. The company said proceeds will be used for data center development and GPU procurement, as well as for general corporate purposes.

The facility has a 364-day maturity and initially bears interest at Term SOFR plus 2.75% per annum, rising to a maximum of 3.50% over Term SOFR subject to other adjustments. Nebius said the facility is part of its "diversified and sequenced" funding strategy, complementing customer prepayments and operating cash flows, and giving it flexibility over the timing and structure of further capital-raising for growth in 2027 and beyond.

We continue to execute our funding strategy as planned, and are pleased to have secured this financing from a leading global financial institution. This is a result of our disciplined approach to managing our balance sheet to fund our portfolio of projects, and once again demonstrates our ability to choose when and how we raise capital to support our growth.

— Ophir Nave, Chief Operating Officer of Nebius

Key facts

This is Nebius's third large financing in the quarter: in July the company closed its first secured debt financing of about $775 million (backed by deployed GPU infrastructure and contracted customer cash flows, at SOFR plus 2.50%, maturing October 31, 2030, with Citi among the participating banks); in August it closed a $5.75 billion convertible-note offering ($3.45 billion due in 2030 and $2.3 billion due in 2034).

Operating scale is rising fast: second-quarter revenue grew 454% year over year to $582.3 million, while the operating loss widened to $175.9 million from $111.2 million a year earlier; cash and cash equivalents stood at $8.04 billion at June 30 (before the July and August transactions). Nebius said other available capital sources include asset-backed borrowing against more than $40 billion of long-term contracts with investment-grade customers; Reuters reported those long-term customers include Microsoft and Meta.