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Nebius secures a 3.5 billion dollar Citi facility for capacity growth

Nebius obtained a 3.5 billion dollar secured financing facility from Citi to support data center development and graphics processor purchases. The facility matures in 364 days. Management says it provides flexibility over longer-term fundraising as capacity expands. More than 40 billion dollars of customer commitments could support other financing; those contracts and the new facility are distinct from cash already drawn.

Economics & Markets··Evening
A processor server tray in protective packaging rests on a wooden pallet, with empty and partly populated data-center racks behind it.

Citi provides a short-term secured facility

Nebius, an Amsterdam-based provider of cloud infrastructure for artificial intelligence, secured a 3.5 billion dollar financing facility from Citi. The facility will support data center development and purchases of graphics processors. It matures in 364 days, providing short-term funding access as the company continues expanding capacity.[1], [2]

The senior secured facility initially carries interest at Term SOFR, a dollar funding benchmark, plus 2.75 percent a year. The margin can rise to 3.50 percent, subject to other adjustments. Citi serves as lead arranger, agent and security agent.[1]

Customer commitments could support later financing

Chief operating officer Ophir Nave said Nebius had more than 40 billion dollars in long-term commitments from investment-grade customers. He identified borrowing against those contracts as a possible source for the next phase of expansion. Its funding sources also include customer prepayments and cash generated by operations.[1]

Longer-term fundraising remains part of the expansion plan

Management says the facility gives Nebius flexibility over the timing and structure of longer-term fundraising. Proceeds may also cover general corporate purposes. The announcement describes an available facility and does not specify an amount already drawn. Data center investments, processor purchases and anticipated financing transactions remain forward-looking plans, with additional capital needs, customer retention and competitive pressure among the company’s stated risks.[1]

For more information on this topic, you can read the related columns.

References

  1. News sourceNebiusNebius secures a $3.5 billion Citi facility with a 364-day maturity↩1↩2↩3↩4
  2. News sourceReutersNebius obtains a $3.5 billion Citi facility for data centers↩
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