Eurofiber, a digital infrastructure and telecommunication service provider, has secured € 2.2 billion (US$ 2.56 billion) in new long-term financing to replace its existing €1.5 billion (US$ 1.75 billion) financing facility. The new financing includes committed debt facilities that have not been drawn and supported by banks and institutional investors.
According to a press release, the refinancing is structured as a sustainability-linked loan under the latest Loan Market Association (LMA) Sustainability-Linked Loan Principles and the agreement includes annual Environmental Social and Governance (ESG) targets covering greenhouse gas emissions. The structure also provides access to several sources of liquidity, including the capital markets over time.
Alex Goldblum, CEO, Eurofiber, said, “This refinancing confirms the strength of Eurofiber’s business model and the confidence of our financing partners in our long-term strategy. The new platform provides a diversified and scalable capital structure that supports our investment plans, enhances our financial flexibility and positions us well for continued growth in Europe’s digital infrastructure market.”
The emissions target covers Scope 1, 2 and 3 emissions and is aligned with the methodology of the Science Based Targets initiative and the financing includes a mechanism under which the loan margin can be adjusted based on performance against the targets.
Eurofiber plans to use the financing to invest in its fiber networks and expand its cloud infrastructure services across its European markets. BNP Paribas and Rothschild & Co acted as financial advisers to Eurofiber, Antin Infrastructure Partners and PGGM Infrastructure Fund in connection with the refinancing while Clifford Chance acted as legal adviser.