Metrofibre Secures EUR 120 Million Debt Financing for Ruhrfibre Project

German developer of fibre optic networks Metrofibre has successfully secured EUR 120 million in debt financing for its urban FTTH rollout project, ruhrfibre. The project, which the company claims as unique in Germany to date, aims to revolutionize digital connectivity by deploying high-performance fibre optic networks.

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Project Description

According to the statement, the ruhrfibre project, developed by Metrofibre, is unique in Germany and focuses on urban Fiber-to-the-Home (FTTH) roll-out in the Ruhr region. Metrofibre has stated that around 150,000 households, along with businesses and public buildings, will be equipped with fiber optic connections (FTTH) in the forthcoming years.

Debt Financing, Green Loan

An international banking consortium, comprising ING, Kommunalkredit Austria, and SEB, is set to provide senior loans totalling EUR 120 million to finance the ruhrfibre project. The financing is structured as a mix of a capital expenditure (CAPEX) facility and a revolving credit facility. This type of financing allows for flexibility in managing expenses.

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Metrofibre says the financing for the ruhrfibre project is structured as a green loan. This means that the funds will be used for environmentally friendly purposes, in this case, deploying fibre optic technology that is more energy-efficient compared to traditional copper cables.

Project Ownership

The project company ruhrfibre is jointly owned by metrofibre, DIF Capital Partners, and Essener Versorgungs- und Verkehrsgesellschaft mbH (EVV). The debt financing of EUR 120 million fully finances the ruhrfibre project, enabling the continued expansion of the fibre optic network roll-out in Essen.

The financing structure includes an accordion facility, which allows for an extension of up to EUR 40 million in financing if needed.

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