Nebius secures $3.5 billion from Citi to fund data centers and GPU purchases
Key Facts
Nebius Group announced in October 2026 that it had entered into a $3.5 billion senior secured credit facility provided by Citi to fund data center development and purchases of graphics processing units. The company said in its official announcement that the facility has a term of 364 days. Proceeds may also be used for general corporate purposes, alongside infrastructure and equipment financing. Citi serves as mandated lead arranger, as well as agent and security agent for the transaction. The financing is part of a series of borrowings Nebius announced during the year, including a secured facility in July and a convertible notes offering in August.
Under the terms of the new facility, interest starts at term Secured Overnight Financing Rate plus an annual margin of 2.75%. The margin rises over the term of the financing to a maximum of 3.50%, with other pricing adjustments. Nebius announced its first senior secured debt facility in July 2026, worth approximately $775 million. The company set that earlier facility's maturity at 31 October 2030, compared with the 364-day term of the new financing. The July facility was also priced at the Secured Overnight Financing Rate plus 2.50%, a lower margin than the initial margin announced for the Citi deal.
Nebius' letter to shareholders illustrates the scale of infrastructure spending the new financing is intended to support, with capital expenditure reaching about $5.7 billion in the second quarter of 2026. The company said GPU purchases were among the main drivers of that spending. Purchases also included equipment associated with those units, alongside data center expansion. On liquidity, the group's results showed cash and cash equivalents of $8,042.1 million at the end of June 2026. That compares with $3,678.1 million at the end of December 2025, according to figures in the second-quarter earnings disclosure.
The group reported revenue of $582.3 million in the second quarter of 2026, according to its earnings announcement. Revenue in the comparative period in the second quarter of 2025 was about $105.1 million. That brought the reported year-on-year revenue increase to 454%. Meanwhile, continuing operations posted a net loss of $190.4 million in the second quarter of 2026. Continuing operations had generated a net profit of $502.5 million in the same period a year earlier, resulting in a swing to a loss despite higher revenue.
In August 2026, Nebius closed a convertible notes offering with a final aggregate principal amount of $5.75 billion. The final size followed the full exercise of additional purchase options, according to the company's announcement of the offering's closing. Alongside the Citi facility announcement, Chief Operating Officer Ofir Navon said growth financing options included asset-backed financing supported by long-term contracts. He added that these contracts with investment-grade customers were worth more than $40 billion. When announcing its agreement with Microsoft, Nebius had said its plan to finance the associated capital expenditure combined cash flows from the agreement with the issuance of debt secured by the contract.
The funding sources discussed by the company include customer prepayments, which it addressed in its second-quarter earnings letter. Nebius said in the letter: "We expect to receive more than $9 billion in customer prepayments during 2026." On contracts, the group announced a new AI infrastructure agreement with Meta in March 2026, with a contract value of about $27 billion. It said in the agreement announcement that the capacity dedicated to Meta would be built on Nvidia's Vera Rubin platform. Nebius set early 2027 as the start of delivery for this capacity, according to the schedule it announced when signing the agreement.