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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Christopher Rautenberg, the Managing Director of metrofibre and ruhrfibre, expressed pride in the new financing partners and emphasized their commitment to environmentally friendly fibre technologies. He also highlighted the importance of contributing to the sustainability of German broadband networks.
DIF Capital Partners, an equity investor in the project, expressed satisfaction with securing full financing for the ruhrfibre project. The successful financing process demonstrates the strong business case for the project and the collaborative relationship with financing partners.
This is a significant development in expanding high-speed fibre optic networks in urban areas, particularly in Germany's Ruhr region.
