(BRIEF) The European Investment Bank (EIB) has granted a significant loan of €175 million to Northern Fibre Holding Group (NFH) for the expansion of its fibre optic network in northern GermanyArray This financing, which is in addition to the €240 million investment circular finalised in April 2023, marks a vital milestone as it is the first structured loan for the deployment of fibre optic networks in Germany. NFH, UBS Asset Management’s virtual infrastructure platform in Germany, will also raise money from several banks. The total amount of the loans amounts to €415 million and will be used to expand a fibre optic network that will connect up to 500,000 homes in less densely populated areas, contributing to Germany’s goal of providing gigabit connectivity to all homes by 2030, as defined in German law. Virtual blueprint. European Virtual Strategy and Compass. This order aims to compensate for Germany’s delay in the deployment of the fibre optic network compared to other European countries and to stimulate the domestic fibre optic market.
(PRESS RELEASE) LUXEMBOURG, December 19, 2023 — /EuropaWire/ — The European Investment Bank (EIB) is offering a €175 million loan to Northern Fiber Holding Group (NFH) for the expansion of its fiber optic network in northern Germany. It is in addition to a €240 million financing circular closed by the company in April 2023 and represents a milestone as it is the first structured loan for the deployment of fibre optic networks in Germany.
NFH is the virtual infrastructure platform of UBS Asset Management in Germany. The EIB loan is in addition to bank financing through Norddeutsche Landesbank (NordLB), Skandinaviska Enskilda Banken (SEB), Kommunalkredit, Raiffeisen-Bank International (RBI), Triodos Bank (Triodos) and KFW-Bankengruppe.
The loans, totalling €415 million, will be used to expand a fibre optic network in northern Germany, with the aim of connecting up to 500,000 families in less densely populated regions.
Germany lags far behind other European countries when it comes to the deployment of high-speed fiber optic networks. This allocation will contribute to the goals of the German Digital Agenda and the European Digital Compass to provide all families with Gigabit connectivity by 2030. Some allocation prices are expected to be funded by operating cash flows when the formula is used.
NFH did this through Macquarie Capital and Hogan Lovell, and the EIB through Ashurst.
EIB Vice-President Ambroise Fayolle, who oversees financing in Germany, said: “The EIB is proud of the global expansion of Germany’s much-needed fiber optic network. Fiber optic networks are the backbone of the digitalization of the economy, which is a “Prerequisite for the long-term good fortune of the modernization and transformation of the country’s industry and services. “
Franz von Abendroth, NFH’s Chief Financial Officer, added: “We are very proud to have attracted the EIB to finance this project. This underlines NFH’s progression and forged strategy in the German fibre optic market. Previous financiers have welcomed the EIB’s inclusion in the consortium to spread the roll-out of the fibre optic network to all families in the region.
Richard Krause, CEO of NFH, said: “There is movement in the German fibre market: with this new acquisition, we are also creating cross-regional synergy effects that will sustainably revitalise the German fibre market and bring advantages to our customers.
Andrew Morris, Head of Infrastructure Equities at UBS Asset Management, said: “The EIB’s commitment to NFH demonstrates confidence in our investment plans in northern Germany and in NFH as a key rural player in the German fibre market. “
Background information
The EIB’s main priorities are climate and environment, progression, innovation and skills, small and medium-sized enterprises, infrastructure and cohesion. It works intensively with other EU establishments to promote European integration, publicise the progress of the European Union and EU policies in more than 140 countries around the world.
Northern Fiber Holding Group (NFH) is the infrastructure subsidiary of UBS Asset Management Real Estate
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SOURCE: European Investment Bank
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