Three german banks provide $1.41 billion loan to Westconnect for fibre optic expansion
The expansion of digital infrastructure in Western Germany received a boost as a consortium with three German banks announced a $1.41 billion to Westconnect. The financing includes a $1.3 billion capex facility and a $108.67 million revolving credit facility and can be further extended by an additional accordion facility.
Brands and Business Magazine
Westconnect GmbH (formerly Westenergie Breitband GmbH), a joint venture between Westenergie AG, a wholly owned subsidiary of E.ON SE, and Igneo Infrastructure Partners. The financing will provide more than 1.5 million households in western Germany with fibre optic connections.
The three banks are; KfW IPEX-Bank, BNP Paribas and UniCredit Bank which are acting as Global Coordinators, Underwriters and Mandated Lead Arrangers. As an underwriter, KfW IPEX-Bank has provided $470.53 million.
As part of a syndication, ABN AMRO, Axa Investment Managers, Bank of China, Landesbank Hessen-Thüringen, Bayerische Landesbank, Bank of Communications, MUFG Bank and National Australia Bank are participating as further lenders.
Igneo acquired a 50 per cent stake in the company to expand Westconnect’s business and build fibre-optic networks in Germany last year. 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.
About Westconnect GmbH
Westconnect GmbH is a leading regional provider of fibre optic infrastructure in Germany, with a focus on western Germany. The company’s mission is to provide high-speed broadband connectivity to households and businesses, enabling them to connect to the digital world. Westconnect has already provided access to fast Internet to over one million people and businesses.
About KfW IPEX-Bank
Within KfW Group, KfW IPEX-Bank is responsible for project and export finance. It supports German and European companies operating in key industrial sectors in global markets by structuring medium and long-term financing for their exports, funding infrastructure investments, securing supply of raw materials and by financing environmental and climate change mitigation projects worldwide.
As a bank that stands for transformation, it finances technologies of the future to support the transition towards sustainable society in all three dimensions of the economy, environment and social. By implementing ambitious sector guidelines for CO2-intensive sectors KfW IPEX-Bank ensures its financings are compatible with the goals of the Paris Agreement. By introducing GHG accounting it aims to achieve a net zero emissions portfolio by 2050.
