Nebius gets $3.5 billion Citi facility for data center growth (updated)

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AMSTERDAM, Oct 22 (Reuters) - AI cloud services firm Nebius NBIS.O on Thursday said it had secured a $3.5 billion financing facility from Citi to fund continued development of its data centres and GPU purchases as it races to expand capacity.
The announcement comes against the backdrop of a selloff in shares last week related to AI infrastructure, after bonds issued by rival CoreWeave fell sharply in value. CoreWeave is usually grouped with Nebius as among the top "neocloud" firms that are building data centres specialized for AI.
The new Nebius facility matures in 364 days and carries an initial interest rate of 2.75% over the term SOFR benchmark rate.
The Amsterdam-based company said the financing would give it greater flexibility over the timing and structure of further fundraising to support growth in 2027 and beyond. Its funding sources also include customer prepayments and operating cash flow.
Chief Operating Officer Ophir Nave said Nebius had other financing options available, including borrowing against more than $40 billion in long-term contracts with investment-grade customers, which include Microsoft  MSFT.O and Meta META.O .
"This facility provides additional financing to support our near-term capacity build-out," Nave said in a statement. The company has around $10 billion in convertible bond debt outstanding following a $5.75 billion issue in August.

 (Reporting by Toby Sterling, editing by Bart Meijer and Tomasz Janowski)
 ((Bart.Meijer@thomsonreuters.com;))