Nebius Secures $3.5 Billion Loan to Fuel Revenue Growth
The senior secured loan provides necessary capital as the company targets significant revenue scaling through 2028.
Updated on Oct. 30, 2026 in Corporate Finance
Live Poll
Do you trust bank analyst ratings when making your own personal investment decisions?
Nebius secured a $3.5 billion senior secured loan from Citi, a move coinciding with BofA Securities maintaining its $310 price target. This financing provides significant capital for the company as it targets substantial infrastructure expansion through 2028.
Why it matters
The infusion of $3.5 billion provides Nebius with immediate liquidity, supporting its aggressive revenue growth estimates that climb from $3.49 billion in 2026 to $27.26 billion by 2028. This capital buffer is critical for executing the infrastructure projects required to meet BofA's scaled projections.
BofA Securities maintains a $310 price target for Nebius, representing an 80.7% upside from its $171.57 reference price. The company simultaneously secured a $3.5 billion senior secured loan from Citi to support operations currently utilizing 675 MW of connected power.
The players
Nebius
An infrastructure-focused technology company currently scaling its connected power capacity to support rapid revenue growth.
BofA Securities
The investment banking division of Bank of America that provides market analysis and equity research for institutional investors.
Citi
A global financial services firm providing credit and capital markets solutions to large corporate clients.
The details
The $3.5 billion senior secured loan from Citi is priced at Term SOFR plus 275 basis points and carries a 364-day maturity period. BofA analysts derived their $310 price target using an 8x calendar-2027 EV/sales multiple, which accounts for the massive projected ramp in revenue. These estimates rely on the company's ability to scale power capacity from current levels toward a goal of 800 MW to 1 GW by year-end.
Timeline
August 12, 2026: BofA Securities establishes the $310 price target.
October 29, 2026: Nebius announces the $3.5 billion loan from Citi.
Early November 2026: Nebius expected to release third-quarter results.
Market Landscape
The loan's pricing at Term SOFR plus 275 basis points aligns with current industry-standard variable-rate commercial debt structures. This capital arrangement follows a pattern of intensive infrastructure financing required for rapid technology scaling.
Operators should track the company's ability to convert 675 MW of current capacity into its aggressive 2027 revenue targets of $12.67 billion. The 364-day maturity on the new loan implies that refinancing or long-term capital planning will be a central operational priority for the firm next year.
The takeaway
Nebius is betting heavily on massive revenue expansion through 2028, backed by high-leverage short-term debt. Investors and partners should monitor the upcoming third-quarter report in early November for updates on the actual utilization rates of its 675 MW connected power capacity.
Further reading
For broader trends in capital allocation, review the latest analysis in Corporate Finance.
Source note: This article includes information reported by Blockspace Media.
Live Poll
Do you trust bank analyst ratings when making your own personal investment decisions?
