Nebius secures $3.5 billion Citi facility as shares fall
Key Facts
Nebius said on Thursday, October 22, 2026, that it had entered into a $3.5 billion senior secured debt facility provided by Citi to finance the expansion of its computing infrastructure. The company said in its statement that proceeds would be used for data center development and purchases of graphics processing units, as well as general corporate purposes. Its shares fell despite the announcement, with Benzinga reporting a decline of 4.35% to $164.10 before regular trading opened. The price cited in its report was recorded at publication at 9:14 a.m. Eastern Time on the day the facility was announced. The financing coincides with capital expansion that the company said was driven primarily by purchases of computing equipment and increased data center capacity.
According to Nebius' statement, the new facility has a maturity of 364 days, with interest linked to term Secured Overnight Financing Rate. An initial annual margin of 2.75 percentage points is added to that benchmark, under the announced financing terms. The margin rises over the life of the facility to a maximum of 3.50 percentage points a year above the benchmark. The facility is also subject to other adjustments, the company said, alongside the announced increase in the interest margin. This maturity differs from that of an earlier secured financing announced by Nebius in July 2026, which matures on October 31, 2030.
The July facility totaled about $775 million, according to Investing's report on the announcement, and also took the form of senior secured debt. Its collateral was based on deployed GPU infrastructure, linking the financing to the computing assets the company uses. The collateral also included contracted cash flows from an investment-grade customer, according to the same source. That financing was priced at the Secured Overnight Financing Rate plus 2.50 percentage points, compared with the higher initial margin announced for the new facility. In August 2026, Nebius also closed a private offering of senior convertible notes with an aggregate principal amount of $5.75 billion.
These financing moves follow rapid growth in the group's business during the second quarter of 2026, when revenue reached $582.3 million, according to the company's letter to shareholders. That represented an annual increase of 454% compared with the same period a year earlier, according to the letter. In its AI cloud business, the adjusted earnings before interest, taxes, depreciation and amortization margin reached 50% during the same quarter. Meanwhile, group capital expenditure totaled about $5.7 billion, exceeding its quarterly revenue. Nebius attributed that spending primarily to purchases of GPUs and related hardware, alongside data center expansion.
Nebius said its funding base includes customer prepayments, alongside operating cash flows, among its available sources of liquidity. Chief Operating Officer Ofir Nav said financing options also include asset-backed borrowing based on customer commitments. Nav described these commitments as coming from investment-grade customers, with more than $40 billion in long-term contracts. He said this option was backed by "investment-grade customer commitments exceeding $40 billion in long-term contracts." This avenue adds to the debt instruments the company has used, including convertible notes and secured facilities, to finance its expansion.
On the services front, Nebius announced the day before the financing announcement that it was making live, public spot pricing available for GPU computing capacity. It said the move aimed to give teams greater visibility into computing costs and more control over them. As for expected liquidity, the company projected in its second-quarter shareholder letter that it would receive more than $9 billion in customer prepayments during 2026. Regarding longer-term financing, it said the new facility increased its flexibility in choosing the timing and structure. The company linked that flexibility to supporting business growth in "2027 and beyond," according to the statement announcing the agreement with Citi.