Deutsche GigaNetz secures €300 million for further fibre expansion
- Financing includes funds from an international infrastructure asset manager and the European Investment Bank (EIB)
- Existing investors reaffirm their commitment and provide additional capital
- Successful financing initiates the company’s next phase of existing clusters consolidation, expansion and growth
Deutsche GigaNetz GmbH, one of Germany’s leading fibre-optic companies, has secured additional financing totalling €300 million. The financing package comprises €200 million in senior debt from the European Investment Bank (EIB) and €100 million in equity and junior capital. The junior component was provided by a leading international infrastructure asset manager. DWS Group and InfraRed Capital Partners are contributing additional equity, reaffirming their long-term commitment to the business.
EIB is granting Deutsche GigaNetz GmbH a senior loan for nationwide fibre-optic network expansion in previously digitally underserved areas. This will provide around 226,000 additional households and businesses with access to high-speed internet via reliable fibre-optic technology. The EIB loan expands existing senior credit facilities and is supported by a consortium of national and international banks, including ING, ABN AMRO, NordLB, LBBW, SEB, NatWest, SMBC, KfW, KfW IPEX, Kommunalkredit Austria, and Edmond de Rothschild. Accordion facilities for potential additional equity and bank funding further enhance financing flexibility.
With these new funds, the company is launching its next phase of expansion and growth, as well as further consolidating its existing presence. The capital will be used to complete existing clusters and develop future digital infrastructure projects. This will provide additional households and businesses with access to reliable FTTH gigabit connections, focusing on previously underserved regions.
Reinhard Sauer, CEO of Deutsche GigaNetz: “With this new capital, Deutsche GigaNetz GmbH can support its growth strategy further. The junior capital is an important component of our overall financing, as it ideally complements bank loans and our internal financing capacity – thereby supporting investments in our fibre network. In line with the EIB, an institution of the European Union, we are actively contributing to the objectives of the German government and the EU Commission in fibre-optic infrastructure expansion.”
Nicola Beer, Vice-President of the EIB: “High-speed fibre-optic networks are our data highways to the digital future. Their expansion is essential, especially in suburban and rural areas. For the digital transformation, we need modern infrastructure that enables businesses and private households to thrive and grow, regardless of location. By improving fibre-optic networks, we secure jobs, strengthen competitiveness, and foster innovation by making rural areas – home to many successful companies and their employees – more attractive.”
Mirko Jerrentrup, CFO of Deutsche GigaNetz: “The implementation of financing through a renowned infrastructure asset manager, the financial commitment of our shareholders, and the expansion of bank financing through the European Investment Bank loan are important milestones – and a real turning point for the entire industry. This demonstrates that confidence from banks and investors in fibre-optic providers remains strong – now it’s time to deliver.”
Currently, only around 10 % of Germany’s approximately 43 million households are actively connected to a fibre-optic network (source: VATM) – a European laggard. Further fibre-optic expansion is therefore key to the country’s competitiveness and digital inclusion.
Perella Weinberg Partners acted as financial advisor and Latham & Watkins as legal advisor for the junior financing of Deutsche GigaNetz GmbH. For the EIB debt financing, Freshfields PartG mbH advised Deutsche GigaNetz GmbH, while Ashurst LLP advised the banking consortium and the EIB.
Background Information
EIB
The European Investment Bank (EIB) is the European Union’s long-term financing institution. Its shareholders are the EU member states. It provides funding for investments that support the EU’s core objectives. EIB projects enhance competitiveness, sustainable development, and social and territorial cohesion. They promote innovation and accelerate the transition to climate neutrality.
Deutsche GigaNetz GmbH
Headquartered in Hamburg, Deutsche GigaNetz GmbH is focused on privately funded, quality-driven fibre-optic network expansion directly into homes (FTTH – Fibre to the Home). The company makes a significant contribution to Germany’s digitalisation, ensuring all citizens have access to the necessary infrastructure. With a clear focus on private-sector expansion, the company aims to build fibre networks across municipalities, complementing existing infrastructure and public funding frameworks. Deutsche GigaNetz is creating a sustainable quality network for future generations using high-quality installation methods. Its open-access solution is non-discriminatory and available to other providers. With lower energy consumption compared to traditional copper networks, Deutsche GigaNetz also contributes to ecological sustainability in municipalities.
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Deutsche GigaNetz GmbH
Carmen Fesenbeck
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Deutsche GigaNetz GmbH | Willy-Brandt-Straße 61 – 65| 20457 Hamburg
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Ronja Wiedbrauk
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Deutsche GigaNetz GmbH | Willy-Brandt-Straße 61 – 65 | 20457 Hamburg
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Ronja Wiedbrauk
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