Westconnect secures €1.3bn to finance the FTTH roll-out in Western Germany

Westconnect GmbH, a leading regional provider of fiber optic infrastructure in Germany, has successfully secured a €1.3 bn financing package with an international banking consortium. The financing includes a €1.2 bn capex facility, a €100 mn revolving credit facility, and can be further extended by an additional accordion facility. The funds will be used to roll out Fiber-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.

“We are very pleased to announce the successful closing of this financing package, which will help us further expand our FTTH network and bring high-speed broadband to many more households and businesses,” said Matthias Krause, Managing Director of Westconnect GmbH. “This is an important milestone for us, and we are grateful for the support of our sponsors and financial partners. We look forward to a successful long-term relationship.”

Westconnect, previously known as Westenergie Breitband GmbH, has more than ten years of experience in the German fiber optic market and is a joint venture between Westenergie AG, a wholly owned subsidiary of E.ON SE, and Igneo Infrastructure Partners. In 2022, Igneo acquired a fifty percent 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 PLC and DC Advisory as financial advisors, respectively.

The financing was led by BNP Paribas, KfW IPEX-Bank and UniCredit Bank as global coordinators, underwriters, and mandated lead arrangers. Furthermore, BNP Paribas acted as global hedge coordinator for the transaction. Other lenders as part of the syndication include ABN AMRO, Axa Investment Managers, Bank of China, Landesbank Hessen-Thüringen, Bayerische Landesbank, Bank of Communications, MUFG Bank and National Australia Bank.

In case of queries:

 Contact person for the media

Stefan Riesberg-Delia

M +49 152 09128558

stefan.riesberg-delia@eon.com

E.ON Impulse GmbH on behalf of Westconnect GmbH

 

About Westconnect GmbH

High-speed internet is the backbone for digital life and work, for Industry 4.0 and modern public administration. Westconnect GmbH, headquartered in Essen, is a fifty percent subsidiary of Westenergie AG. The company is responsible for expanding the broadband network in North Rhine-Westphalia, Rhineland-Palatinate, and Lower Saxony. Westconnect has already provided more than one million residents and businesses with access to broadband internet. Westconnect’s broadband products are marketed under the E.ON Highspeed brand (www.eon-highspeed.com).