Italian telecommunications company TIM receives a 360 million euros loan from the European Investment Bank (EIB), partly backed by SACE, to support the development of its next-generation network infrastructure in Italy. The loan will be used to expand 5G coverage across the country by the end of 2025 using 700 MHz bands.
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The EIB financing, 60 percent guaranteed by Italian insurance and finance company SACE, will also allow TIM to access a debt instrument on more favourable terms than those offered on the bond banking market.
Objectives of the 2030 Digital Decade
EIB Vice-President Gelsomina Vigliotti, TIM CEO Pietro Labriola, and SACE Chief Business Officer Bernardo Attolico signed the agreement. The operation aligns with the objectives of the 2030 Digital Decade, a European Union programme that aims to develop secure and sustainable digital infrastructure, support the digital transformation of businesses, and digitalise public services.
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Previous EIB financing for TIM projects
The EIB has already provided over 1 billion euros in financing for TIM projects between 2019 and 2023, primarily focused on developing and supporting the telecommunications network infrastructure, bridging the digital divide, and meeting the targets of the Digital Agenda for Europe.
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TIM's infrastructure development and market position
The TIM Group develops fixed-line and mobile infrastructure, operating on the international services market via Sparkle. TIM is the number one telecommunications company in Italy, and TIM Brasil is one of the main players in the South American telecommunications market and a leader in 4G coverage.
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SACE's role in the loan guarantee
SACE joined a pool of financial institutions under the 'Garanzia Italia' framework in 2022 to guarantee a Euros 2 billion loan to TIM to support investment in Italy planned under the Group's business plan.
The EIB is the long-term lending institution of the European Union and is owned by EU member states. SACE, on the other hand, is controlled by the Italian Ministry for the Economy and Finance. With this new financing, TIM will be able to accelerate the expansion of its 5G network and support Italy's digital ambitions for the next decade.
