Thu, Oct 22, 2026
Nebius secures $3.5 billion financing facility with Citi
Analysis
Positive: Nebius secured $3.5 billion in incremental financing from Citi to help fund its GPU and data-center buildout, diversifying its funding base beyond convertible notes and customer prepayments without issuing new equity. The facility is short-term (364-day maturity) and floating-rate (SOFR+2.75% rising to 3.50%), marking it as bridge financing rather than permanent capital, with management citing over $40 billion of long-term customer contracts as a basis for future asset-backed financing.
Key points
- On October 17, 2026, Nebius entered into a $3.5 billion senior secured bridge facility agreement with Citibank, N.A.
- Citi acted as mandated lead arranger, agent, and security agent.
- Facility has a 364-day maturity (through October 16, 2027), with interest at Term SOFR plus 2.75% per annum, rising by 0.25% each 90-day period to a maximum of 3.50% per annum.
- Proceeds will fund GPU infrastructure buildout, data center development, GPU procurement, and general corporate purposes.
- Secured by substantially all of the Borrowers' assets, including pledged shares of the US and Dutch Borrowers; includes a minimum liquidity covenant.
- Part of Nebius's diversified, sequenced funding strategy alongside customer prepayments, operating cash flow, and other financing mechanisms.