HSH Nordbank to finance fibre optic network expansion in rural areas
Hamburg/Kiel, November 5, 2015 - HSH Nordbank will support Deutsche Glasfaser (DG) in its plans to roll-out the network to about 400,000 households in rural areas, in Schleswig-Holstein among others, with long-term project finance amounting to € 72 million.
As Mandated Lead Arranger of the syndicated finance, HSH Nordbank thus more than tripled its own share from originally € 20 million. HSH Nordbank is the only German commercial bank to have committed itself to private-sector fibre optic expansion with project finance.
Deutsche Glasfaser, a private-sector investor in fibre optic expansion, benefits in its ambitious plans from the know-how of its former parent company, the Netherlands-based Reggeborgh Group, which has connected more than two million households to the fibre optic grid in the Netherlands. The capital-intensive expansion of the network is now being stepped up following the takeover in July of the majority of shares in DG by the KKR private equity company.
“Having had HSH Nordbank at our side as a strategic partner for many years, we are confident that we will successfully execute this forward-looking project,” said Jordi Nieuwenhuis, Managing Director of Deutsche Glasfaser. Vincent Policard, Director at KKR, emphasized: “HSH Nordbank already has profound market expertise in this segment, which is why we feel very well understood and cared for with our plan.”
“On the one hand, this deal strengthens our long-standing and trustful relationship with clients Deutsche Glasfaser and KKR; on the other hand we are thereby establishing our-selves further in this promising sector of the future,” said Dr. Marcus Kleiner, Head of Infrastructure & Rail at HSH Nordbank.
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