Nebius Group N.V. announced a $3.5 billion senior secured financing facility from Citi on 22 October 2026 for data centre development, GPU purchases and general corporate purposes, StreetInsider reported from a company release. The Amsterdam-headquartered, Nasdaq-listed AI cloud services company said the facility would support its near-term capacity build-out.
Key points
- The Citi facility matures in 364 days and initially bears interest at Term SOFR plus 2.75% per annum.
- Nebius plans to use the money for data centres, GPUs and general corporate purposes.
- Its chief operating officer said more than $40 billion in long-term customer contracts could support other borrowing.
- The financing follows a $5.75 billion convertible bond issue in August.
Citi facility runs for 364 days
The facility has a 364-day maturity. Its initial annual interest rate is Term SOFR, a benchmark for term borrowing, plus 2.75%. StreetInsider reported a maximum rate of 3.50% per annum, subject to other adjustments. Citi acted as mandated lead arranger, agent and security agent for the financing.
Nebius said it would put the proceeds towards developing data centres and procuring GPUs, alongside general corporate spending. Those uses cover both the facilities and the computing equipment needed for its AI cloud capacity. The company also identified customer prepayments and operating cash flow as existing funding sources.
Chief Operating Officer Ophir Nave described the facility as financing for the company’s near-term capacity build-out. He said Nebius was sequencing its fundraising to manage its long-term cost of capital, while retaining other sources for a later phase of growth.
Nebius points to $40 billion in contracts
Nave said Nebius could borrow against more than $40 billion in long-term contracts with investment-grade customers, including Microsoft and Meta, Reuters reported. He presented that asset-backed financing as one of the company’s options for raising further capital. The Citi facility is separate from that potential borrowing against customer commitments.
Nebius said the new financing would give it more flexibility over when and how it raises funds for growth in 2027 and beyond. That plan places the 364-day facility alongside its customer prepayments and operating cash flow, rather than replacing those funding sources.
The company has around $10 billion in convertible bond debt outstanding after a $5.75 billion issue in August. The latest arrangement adds a senior secured facility to a funding programme that already includes substantial convertible borrowing.
CoreWeave bonds fell before Citi deal
Bonds issued by rival CoreWeave fell sharply in value before an AI-infrastructure share sell-off in the week before 22 October, Reuters reported. Shares linked to AI infrastructure also sold off during that period. CoreWeave and Nebius are both grouped among cloud companies building data centres specialised for AI.
Microsoft is among the customers Nave named in connection with Nebius’s long-term contracts. AI Affairs previously reported Nvidia and EBU’s expansion of a broadcaster AI framework involving Microsoft and Nebius.
