Background
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Infrafibre Germany (IFG) is a fast-growing fibre provider in Southern Germany and is fully owned by Infracapital, the infrastructure equity investment arm of M&G plc
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IFG’s platform operates a fibre network that reaches c.150k homes passed in rural and underserved areas of Southern Germany, deploying and operating both fibre to the cabinet (FTTC) and fibre to the premises (FTTP)
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Germany is considered as one of the most underserved broadband markets in Europe, reflecting the importance of IFG’s role in connecting rural communities in Southern Germany
Process
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DC Advisory (DC) was appointed as exclusive financial advisor for Infracapital’s financing of IFG’s ongoing network rollout
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DC supported Infracapital throughout the financing process and successfully delivered a number of detailed work streams, including:
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Business plan development and analysis;
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Financial modelling and debt structuring;
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Support in drafting investment committee materials; and
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Documentation negotiation and engaging with potential lenders
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Outcome
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DC supported IFG in securing a highly attractive EUR 895M financing package executed on competitive terms, including EUR 500M committed debt (including a EUR 40M RCF) and EUR 395M uncommitted accordion tranche
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This funding will support IFG's growth ambitions to reach c.510k homes passed by 2026
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DC leveraged its extensive knowledge and experience in the fibre sector to successfully lead this process, and this transaction further reinforces DC’s experience in advising on complex infrastructure financings
