now loading...
Wealth Asia Connect Treasury & Capital Markets Europe ESG Forum TechTalk
Asia Connect
Westconnect secures €1.3 billion loan for German fibre optics
Bank of China and MUFG join syndication to finance FTTH project for 1.5 million households
Michael Marray 17 May 2023

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.

Conversation
Robert Coughlan
Robert Coughlan
finance sector lead
Google Cloud
- JOINED THE EVENT -
Webinar
Unlocking the value of automation and AI in asset management
View Highlights
Conversation
Anand Rengarajan
Anand Rengarajan
global head of sales and head of Asia Pacific, securities services
Deutsche Bank
- JOINED THE EVENT -
In-person roundtable
Securing the future
View Highlights
Advertisement