Open Fiber has subscribed with a pool of commercial banks, Cassa Depositi e Prestiti and the European Investment Bank (EIB), a seven-year loan transaction for an amount of up to 3,5 billion euro, aimed at implementing its Business Plan. According to a note, this is the largest structured finance operation in the EMEA area (Europe, Middle East and Africa) for the development of a fiber optic network. As part of the overall financing transaction, support from shareholders (Cdp Equity and Enel) is also envisaged, for a total amount up to a maximum of a further 950 million. The loan, together with the resources made available by the shareholders and the cash flow generated by Open Fiber, will allow the construction of the new Italian fiber optic network in Fiber To The Home (FTTH) mode. The investment plan for a total of 6,5 billion, the note recalls, aims to reach around 19,5 million real estate units both in urban areas (clusters A and B) and in smaller centers (clusters C and D).
“The financial market has shown great interest in the Open Fiber Business Plan. The operation involves the most important Italian and international credit institutions. This is an important sign of confidence in the project, in the wholesale-only model and above all in the people of Open Fiber who have done a fantastic job in recent months", commented the CEO of Open Fiber, Elisabetta Ripa. While Franco Bassanini, president of the company said: “The presence in the pool of lenders of various foreign financial intermediaries of primary importance is, implicitly, a sign of confidence in our country, significant in a phase of nervousness on the markets; the operation is also a new demonstration of the growing attention of the markets for the validity of the business model adopted by Open Fiber and other innovative European companies, the most suitable to meet the need to create infrastructures with long-term investments generation network for the Gigabit Society”.
The commercial banking pool consists of Bnp Paribas, Societe Generale and Unicredit, as Underwriter, Global Coordinator, Global Bookrunners and Initial Mandated Lead Arrangers, Cassa depositi e prestiti, the European Investment Bank, as well as Banca IMI, Banco Bpm, Mps Capital Services and Ubi Banca and, among the international ones, Credit Agricole, Ing, Caixa Bank, Mufg Bank, Natwest and Banco Santander, as lenders. Unicredit also performs the role of Agent. At the same time as the disbursement of the new loan, expected by October 2018, Open Fiber will provide for the full repayment of the currently outstanding debt. The legal advisors of the transaction were White & Case, on behalf of the Company, Gianni, Origoni, Grippo, Cappelli & Partners, on behalf of the banks and Ashurst, on behalf of the European Investment Bank.
