- Nebius Group (NBIS, Financial) secures $1 billion through private placement of convertible notes.
- The funds are allocated to expand AI infrastructure and data center operations.
- Convertible notes carry interest rates of 2.00% and 3.00%, maturing in 2029 and 2031.
Nebius Group N.V. (NASDAQ: NBIS), a prominent AI infrastructure company, has successfully raised $1 billion through a private placement of senior unsecured convertible notes. The issuance comprises two tranches: $500 million of 2.00% convertible notes due in 2029, and $500 million of 3.00% convertible notes due in 2031.
Founder and CEO Arkady Volozh emphasized the significance of this financial milestone, stating, “We are pleased to have successfully raised $1 billion in convertible notes, marking another major milestone and underscoring the deep conviction of the investment community in our business." The capital infusion aims to accelerate Nebius Group’s global AI infrastructure expansion, which is key to reaching their medium-term revenue targets in the billions.
The notes will be issued pursuant to indentures dated June 5, 2025, and will mature on June 5, 2029, for the 2029 Notes, and June 5, 2031, for the 2031 Notes, barring any early conversion or redemption. They feature initial conversion rates offering a 40% premium over the last reported sale price of the company’s Class A shares.
The proceeds will be primarily utilized for acquiring additional compute power and expanding Nebius Group’s data center footprint, alongside general corporate purposes. With a strong balance sheet and low-interest obligations, Nebius Group plans to translate revenue growth into sustainable bottom-line results, supporting their vision for hypergrowth within the AI industry.
