Westconnect has signed a €1.3 billion ( US$1.42 billion ) financing package for the expansion of its fibre optic network in western Germany. The financing includes a €1.2 billion capex facility and a €100 million revolving credit facility, and can be further extended by an additional accordion facility.

KfW IPEX-Bank, BNP Paribas and UniCredit Bank acted as global coordinators, underwriters and mandated lead arrangers. As an underwriter, KfW IPEX-Bank provided €433 million.

Participants in the syndication were Bank of China, MUFG Bank, ABN Amro, Axa Investment Managers, Landesbank Hessen-Thüringen, Bayerische Landesbank, Bank of Communications, and National Australia Bank.

Westconnect ( formerly Westenergie Breitband GmbH ) is a joint venture between Westenergie, a wholly owned subsidiary of Essen-based electric utiluty E.ON, and Igneo Infrastructure Partners.

In 2022, Igneo acquired a 50% stake in the company to expand Westconnect’s business and build fiber-optic networks in Germany. E.ON and Igneo set up the financing package for Westconnect as an integral part of the M&A process, and were supported by Barclays Bank and DC Advisory.

The funds will be used to roll out Fibre to the Home ( FTTH ) in the coming years to more than 1.5 million households in western Germany, with a focus on North Rhine-Westphalia, Rhineland-Palatinate, and Lower Saxony.

Westconnect has already provided access to fast internet to over one million people and businesses.