Nebius Secures $3.5 Billion Citi Facility to Fund AI Expansion

Nebius (NASDAQ: NBIS) Group NV secured a $3.5 billion senior secured financing facility from Citi to fund data-center construction and purchases of graphics processing units, adding short-term borrowing capacity as it expands its artificial intelligence cloud business.

The facility matures in 364 days and initially carries interest at Term SOFR plus 2.75 percentage points. The margin increases to as much as 3.50 percentage points, subject to other adjustments, according to the company’s Oct. 22 announcement. Proceeds can also be used for general corporate purposes.

The financing gives Nebius more flexibility over the timing and structure of longer-term capital raising. Chief Operating Officer Ophir Nave said the company could pursue further asset-backed borrowing against more than $40 billion of long-term commitments from investment-grade customers. Citi acted as mandated lead arranger, agent and security agent.

The agreement follows Nebius’s first secured debt financing, announced in July. That approximately $775 million facility was backed by deployed GPU infrastructure and contracted customer cash flows, carried interest at SOFR plus 2.50 percentage points and matures on Oct. 31, 2030. Citi was among the banks participating in that transaction.

Nebius also closed a $5.75 billion convertible-note offering in August, comprising $3.45 billion of notes due in 2030 and $2.3 billion due in 2034. The company said those proceeds would support data-center expansion, its AI cloud platform and purchases of components including GPUs.

Those financings accompany a sharp increase in the company’s operating scale. Second-quarter revenue rose 454% from a year earlier to $582.3 million, while its operating loss widened to $175.9 million from $111.2 million. Nebius reported $8.04 billion of cash and cash equivalents at June 30, before the July and August transactions.