· 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 a pioneer in fiber optic expansion in rural and suburban areas in Germany. As digital provider of the regions, Deutsche Glasfaser plans, builds and operates open-access fibre networks for private households, businesses and public institutions. The company aims to roll out fibre networks across the nation, thereby contributing significantly to Germany’s digital transformation.
With innovative planning and construction methods, Deutsche Glasfaser is a specialist for fast and cost-efficient FTTH deployment. Backed by experienced 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 >€10bn.
