Eurofiber has completed a €2.2 billion refinancing. The new financing platform replaces the existing €1.5 billion facility and includes substantial undrawn credit capacity. The loan is linked to ESG goals related to CO2 reduction, circularity, and gender diversity.
Eurofiber states that a broad group of banks and institutional investors supported the transaction. The result is a diversified financing structure with investment-grade characteristics and access to multiple liquidity sources. In the long term, this will also include the capital markets. A portion of the new facilities has not yet been drawn down, leaving room for further investments.
In 2022, the €1.5 billion financing structure was established to fund the rollout of fiber-optic networks and future acquisitions. The new platform is significantly more robust.
ESG goals determine the interest rate
The loan is structured as a Sustainability-Linked Loan in accordance with the most recent LMA principles. This includes a margin adjustment linked to three performance indicators: reducing Scope 1, 2, and 3 emissions according to the methodology of the Science Based Targets initiative, a new circularity KPI, and greater gender diversity within the workforce. The targets are reviewed annually.
“This refinancing confirms the strength of Eurofiber’s business model and the confidence of our financing partners in our long-term strategy,” said CEO Alex Goldblum.