now loading...
Wealth Asia Connect Middle East 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
David Smith
David Smith
senior investment director, Asian equities
abrdn
- JOINED THE EVENT -
Webinar
APAC Climate Change Progress & Obstacles in 2022
View Highlights
Conversation
Yi-Chen Chiang
Yi-Chen Chiang
senior sustainable investment analyst
Manulife Investment Management
- JOINED THE EVENT -
6th ESG Summit
Beyond the hype
View Highlights