Nebius raises $775M in secured debt for AI cloud expansion

Nebius Group NV raised $775 million in its first senior secured debt financing, backed by deployed GPU infrastructure and contracted cash flows from an investment-grade customer, to accelerate the build-out of its full-stack AI cloud platform.

"This financing is an important step in that strategy, and reinforces our confidence that our disciplined, diversified approach — from owned data centers to asset-light partnerships — together with robust demand for our high-value software stack, will enable us to build a sustainable AI cloud business with strong and durable margins," Ophir Nave, chief operating officer at Nebius, said.

The facility matures Oct. 31, 2030, and is priced at the secured overnight financing rate plus 2.50%. Together with cash flows under the customer agreement, the facility covers more than 100% of the capital expenditure required to deploy the underlying GPU infrastructure. The transaction was significantly oversubscribed, with MUFG serving as structuring agent, sole bookrunner and underwriter alongside a syndicate that included ABN AMRO Bank, Bank of America, Deutsche Bank, HSBC, Citi, Credit Agricole CIB, ING, Morgan Stanley and Goldman Sachs.

The financing converts an operational infrastructure asset into growth capital and provides a repeatable framework for Nebius to raise additional asset-level financing. With more than $40 billion of contracted revenue from investment-grade customers including Microsoft and Meta already in place, Nebius expects to raise more capital at similarly attractive terms. The company recently delivered the latest planned capacity tranche to Microsoft and remains on track to deliver remaining tranches under the contracted schedule.

What This Means for Investors

Nebius shares have gained about 138% year to date, giving the Amsterdam-based company a market capitalization of about $49 billion. The stock fell 11% on July 15 after management raised its 2026 capital expenditure forecast to between $20 billion and $25 billion, with most new capacity not generating significant revenue until early 2027. The debt facility, priced at a relatively tight spread of SOFR plus 2.50%, signals strong institutional confidence in Nebius's contracted revenue base and could help fund growth without further near-term equity dilution.

This article is for informational purposes only and does not constitute investment advice.