Nebius Group has borrowed $3.5 billion from Citi under a senior secured facility that matures in 364 days. The Am
Exterior photograph of Nebius's flagship Mäntsälä data center campus.sterdam-based AI cloud company announced the facility on October 22. Citi acted as mandated lead arranger, agent and security agent.
Nebius will use the proceeds for data center development and GPU procurement, along with general corporate purposes. The facility initially bears interest at Term SOFR plus 2.75% per annum, rising to a maximum of 3.50% per annum, subject to other adjustments. Nebius describes the loan as part of a funding base that also includes customer prepayments and operating cash flow.
TheStreet reported that the one-year term makes the facility a bridge to longer-term financing rather than the financing itself. The facility sits alongside roughly $10 billion of convertible bonds Nebius already has outstanding, TheStreet reported, citing Reuters. Nebius's first secured loan, raised in July, priced at 2.5 percentage points over SOFR, TheStreet reported. ForkLog put that July facility at $775 million.
"Sequencing our financing is how we optimize our long-term cost of capital," said Ophir Nave, Chief Operating Officer at Nebius. "This facility provides additional financing to support our near-term capacity build-out."
Nave said Nebius retains a range of capital sources for the next phase of growth, including asset-backed financing based on investment-grade customer commitments of more than $40 billion in long-term contracts. The Citi facility funds a capacity expansion Nebius has pursued through third-party deals. Those include a framework for up to 50MW at NEOM's Oxagon campus in Saudi Arabia and a letter of intent to anchor VOLT's 600MW Rotterdam AI Gigafactory. Nebius also signed a 50MW lease with AIB Data Centers in October.
Baxtel tracks 14 Nebius data center sites, four of which are operational, including a 50MW site in Vineland, New Jersey.
Related on Baxtel
