Crédit Agricole CIB advised on the largest fibre financing in Germany

Deutsche Glasfaser Group (DGF) is the largest independent Fibre-to-the-Home (FTTH) operator in Germany focusing on underserved rural and suburban areas with a network covering 1.1 million FTTH homes. The new financing will support DGF´s plan to cover about 4 million homes with FTTH by year-end 2025, a key step on its longer-term ambition to reach a 6 million FTTH footprint. DGF is owned by two major clients of the Bank: EQT Infrastructure (51%) and OMERS (49%).

Crédit Agricole CIB acted as co-financial advisor, sustainability advisor, underwriter, bookrunner and hedge coordinator of the transaction.

The new financing includes sustainability-linked elements to align with the high ESG commitments from DGF and its shareholders, whereby interests will be linked to: 

The EUR 5.75bn financing comprises a EUR 3.0bn term loan, a EUR2.5bn capex facility and a EUR 250m revolving credit facility. In addition, DGF secured an uncommitted accordion credit facility of EUR 1.5bn.

Syndication was done through a combination of banks and institutional investors. Being the largest digital infrastructure financing in Germany, and second largest in Europe, this transaction is a key achievement and credential for Crédit Agricole CIB’s technology, media, and telecom (TMT) debt advisory and financing franchise.
 

“This is obviously a landmark transaction in the digital infrastructure space in Europe being the largest financing within the largest European broadband market with leading sponsors EQT and OMERS. Thanks to a remarkable collective work from several teams involved, the bank has played a lead role further strengthening our positioning as a leading digital infrastructure financing house in a highly competitive market environment. Deutsche Glasfaser is set to become one of the leading digital infrastructure player in Germany.”

Ali El Amari, Managing Director, TMT Finance, Corporate and Leverage Finance

“We are honoured to have advised Deutsche Glasfaser Group and its shareholders EQT Infrastructure and OMERS on this landmark transaction in the fibre sector. This is an outstanding achievement confirming once again the strength of our integrated TMT debt advisory model and the benefits of leading from the front. The successful execution was the result of an excellent team work across multiple business lines.”

Elodie Moreau, Executive Director, Structured Finance Advisory - TMT

“We are delighted to have supported the sponsors as part of the large underwriting bank group, to give the deal certainty. Syndication was targeted at a select number of relevant lenders, and the deal was very well received and significantly oversubscribed resulting in a very strong and complementary final lending group. This was only possible due to the active support of the company and sponsors throughout the sell-down process and hard work of all the Bookrunners.”

Toby Walker, Head of Digital, Infrastructure and Rail Finance - EMEA Private Debt Distribution