· Deutsche Glasfaser Group (”DG”) secures an additional €1.25bn of debt commitments (accordion facility) under its existing financing package to support its Fiber-to-the-Home (”FTTH”) roll-out in rural & suburban Germany.
· DG received significant support from both existing and new commercial lenders, accounting for ~€900m of the €1.25bn, with a further €350m from the European Investment Bank for investments in underserved areas of Germany – aligned with DG’s roll-out strategy and return policies.
· This new financing underscores DG’s position as the FTTH pioneer and market leader in rural and sub-urban Germany, leveraging its ability to roll-out and commercialize its state-of-the-art network at scale.
· The secured debt financing of €1.25bn comes in addition to existing debt financing facilities of €5.75bn at the same terms, together representing a €7bn debt package maturing in 2031, that is complemented by the equity commitments of DG´s shareholders, EQT Infrastructure and OMERS.
· The new financing will support DG on its longer-term plan to reach a nationwide footprint of up to 6 million homes passed with FTTH.
· The accordion also contains sustainability-linked elements, including dedicated carbon emission reduction targets, with the company reiterating its commitment to high ESG standards.
· ING and Société Générale acted as financial and sustainability advisors to DG on this financing while Paul, Weiss, Rifkind, Wharton & Garrison LLP acted as legal advisor.
Deutsche Glasfaser Group is the leading fiber broadband provider in rural & sub-urban Germany. As a FTTH pioneer and industry leader, Deutsche Glasfaser plans, builds and operates open-access fiber networks for private households, businesses and public institutions. The company aims to roll-out fiber networks across the nation, thereby contributing significantly to Germany’s digital transformation. With innovative planning and construction methods, Deutsche Glasfaser is the technology leader for fast and cost-efficient FTTH deployment. Backed by the leading digital infrastructure investors EQT and OMERS, Deutsche Glasfaser is one of the financially strongest operators in the German market, with a planned total private-sector investment volume of >€10 bn.
