Firmus Eyes $10B Financing Ahead of Australian IPO
Nvidia-backed Firmus Technologies is in talks to raise around $10 billion in financing ahead of its planned Australian IPO, according to Bloomberg. This would be split between senior and mezzanine debt, with about $7.5 billion in total debt financing and approximately $2.5 billion in equity.
The proposed debt facility could have a five-year tenor and may carry an interest margin of around 275 basis points over the SOFR for the senior debt and about 725 basis points over SOFR for the mezzanine portion, Bloomberg reported.
Firmus' planned IPO in late October is expected to raise up to $5 billion, which would be used to fund purchases of GPUs for the company's AI Factory campus in Batam, Indonesia. This development comes after Firmus secured a $10 billion loan from a consortium that included Blackstone in February.
The proposed financing talks come as part of Nvidia's expansion plans in the region, with the chipmaker providing revenue sharing and credit support for Firmus' deal, similar to its recent involvement with Indonesian AI platform Zankore.