Westconnect has signed a €1.3 billion (US$1.42 billion) financing package for the expansion of its fibre optic network in western Germany. The financing includes a €1.2 billion capex facility and a €100 million revolving credit facility, and can be further extended by an additional accordion facility.

KfW IPEX-Bank, BNP Paribas and UniCredit Bank acted as global coordinators, underwriters and mandated lead arrangers. As an underwriter, KfW IPEX-Bank provided €433 million.

Participants in the syndication were Bank of China, MUFG Bank, ABN Amro, Axa Investment Managers, Landesbank Hessen-Thüringen, Bayerische Landesbank, Bank of Communications, and National Australia Bank.

Westconnect (formerly Westenergie Breitband GmbH) is a joint venture between Westenergie, a wholly owned subsidiary of Essen-based electric utiluty E.ON, and Igneo Infrastructure Partners.

In 2022, Igneo acquired a 50% 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 and DC Advisory.

The funds will be used to roll out Fibre 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.

Westconnect has already provided access to fast internet to over one million people and businesses.