Nebius Group, the Amsterdam based AI cloud company listed on Nasdaq, has entered a $3.5 billion senior secured facility provided by Citi. The facility matures in 364 days and initially bears interest at Term SOFR plus 2.75 percent per annum, increasing to a maximum of 3.50 percent. Proceeds will fund data center development and GPU procurement, and may be used for general corporate purposes. Citi acted as mandated lead arranger, agent and security agent.
The company framed the borrowing as sequencing, not need. Chief operating officer Ophir Nave said the facility complements customer prepayments and operating cash flow, gives Nebius flexibility over the timing and structure of further capital raising, and leaves open asset backed financing based on investment grade customer commitments of more than $40 billion of long term contracts. In August the company had already secured $5.75 billion in senior notes, according to Datacenter Dynamics.
The timing is the story. The announcement landed in the same week the market sold AI infrastructure names hard, Meta fell on negative free cash flow, and reporting noted yields on rival CoreWeave’s 2031 bonds briefly exceeding 16 percent. Nebius borrowing for one year at SOFR plus 275 to 350 basis points is a materially cheaper cost of capital than the bond market is charging its closest peer, and the gap is the market’s current ranking of neocloud balance sheets.
October has been a capacity month for the company regardless of financing. Nebius has signed lease agreements including for Neom’s Oxagon data center in Saudi Arabia, covered on this site on October 22, with Volt for capacity in the Netherlands, and with AIB Data Centers in the United States. The facility funds the near term buildout those leases require, with the longer term funding decision deliberately deferred.