Infracapital signs €895m financing facilities for German fibre provider, IFG, to fund ongoing rollout in underserved communities
Infracapital, the infrastructure equity investment arm of M&G Plc, has signed a financing agreement for its German fibre infrastructure asset, Infrafibre Germany (IFG). The deal comprises seven year infrastructure style debt facilities underwritten by NatWest, ABN AMRO and NORD/LB with SEB acting as a cornerstone lender.
IFG targets underserved and rural areas in Southern Germany to deploy and operate fibre infrastructure, both fibre to the cabinet (FTTC) and fibre to the premises (FTTP). The total facility size is €895m, comprising €500m committed upfront (incl. a €40m RCF), and a €395m uncommitted accordion tranche. These will be paramount to supporting IFG’s growth ambitions to reach its target of c. 510,000 homes passed by 2026. Germany is one of the most underserved broadband markets in Europe and the platform’s network has already reached c. 150,000 homes passed.
Infracapital acquired Leonet in June 2018 and BBV in July 2020, which have since been rebranded under the name of IFG. Both investments were made by Infracapital Partners III. Fund III’s strategy is to invest sustainably in essential infrastructure to meet the changing needs of society and support long-term economic growth across Europe. Connectivity is essential in today’s world and stimulates growth outside of cities. Additionally, fibre broadband is more carbon efficient than legacy copper networks.
The completion of this financing is testament to the strength of the Infracapital team, particularly the combined efforts of the in-house financing capabilities, the active asset management and the transaction team.
Mathieu Lief, Managing Director at Infracapital, said: "These facilities are extremely important for IFG’s growth plans. We are pleased to secure this very attractive financing package, reflecting the importance of IFG’s role in connecting rural communities in Southern Germany."
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About Infracapital
Infracapital invests in, builds and manages a diverse range of essential infrastructure to meet the changing needs of society and support long-term economic growth. We take an active role in all of our investments, whether nascent or large, to fulfil their potential and ensure they are adaptable and resilient. Our approach creates value for our investors, as we target investments with the scope for stable and sustainable growth. Our portfolio companies work closely with the communities where they are based, to the benefit of all stakeholders. Infracapital is well positioned to deliver the significant investment required to help build the future. The founder-led team of experienced specialists has worked with more than 60 companies around Europe and has raised and managed over £6.8 billion of client capital across six funds.
Infracapital is part of M&G Plc, an international savings and investments business, managing money for around 5 million retail customers and more than 800 institutional clients in 28 markets. Total assets under management are £348.9 billion (as at 30 June 2022).
About IFG
Infrafibre Germany is a leading investor in future-proof high-speed networks primarily in rural areas. Our vision is to transform rural communities across Germany by bringing outstanding full-fibre broadband. We aim to boost businesses and communities through reliable access to fast internet. We believe this is best done by establishing local and regional partnerships and retaining strong regional brands to serve customers locally. Since 2018 we have been supported by Infracapital, one of the longest standing European infrastructure investors and an established owner of fibreoptics networks across Europe.