IREN Limited (NASDAQ: IREN) closed a $3.65 billion investment-grade GPU financing facility to support delivery of its AI Cloud contract with Microsoft, the company announced.

The financing comprises a $2.10 billion U.S. private placement at a fixed rate equivalent to SOFR+2.13% and a $1.55 billion delayed draw term loan at a floating rate of SOFR+2.25%. IREN achieved a blended cost of debt of 6.00% across both components.

The transaction received Fitch and DBRS ratings of A and A(low) respectively. The facility is secured against the GPUs and associated contracted cash flows from the Microsoft agreement.

Combined with customer prepayments, the facility funds $5.59 billion of the $5.81 billion GPU capital expenditure under the Microsoft contract, representing approximately 96% of the total at an average financing cost of 3.31%. The financing supports IREN's expansion to 480MW of AI Cloud capacity by the end of 2026.

Goldman Sachs and J.P. Morgan served as joint lead managers and arrangers. The offering included participation from global financial institutions, asset managers and insurance investors.

"Securing investment-grade financing on these terms reflects both the quality of our customer contracts and the fact that we own the data center infrastructure these GPUs run in," said Daniel Roberts, Co-Founder and Co-CEO of IREN.

IREN operates as a vertically integrated AI Cloud provider, delivering data centers and GPU clusters for AI training and inference. The company maintains a portfolio of grid-connected land and power in renewable-rich regions across North America, Europe and Asia-Pacific.