Deutsche GigaNetz confirms ambitions and raises further equity in the triple-digit million range from investors

• Company's implementation of digital infrastructure projects to expand 100% fibre-optic infrastructure to the home confirmed as core strategy
• Implementation of roll-out on track and delivering record number of customer activations
• Funding for further growth and business expansion secured

Hamburg, 28 November 2024. Deutsche GigaNetz, a leading fibre-optic provider in Germany, has successfully raised further capital in the triple-digit million range from its existing equity investors IRCP (Sun life) and DWS (Deutsche Bank), acting as managers of various infrastructure funds. This investment is part of its initial plan to connect more than one million households with real fibre-to-the-home, with the company’s ambition to be a leading participant in the German market beyond this target. Just at the end of last year, the company successfully completed its second debt raise and secured investment loans also in the triple-digit million range from existing and new lenders. Currently, Deutsche GigaNetz is in discussions with the European Investment Bank (EIB) for getting access to a further Capex Facility on top for deploying fiber optic networks in suburban and rural areas.

Investment for digital infrastructure secured

The digital infrastructure market in Germany remains highly attractive with significant growth potential. Only 4.2 million out of 43 million households are currently connected to real 100% fibre-to-the-home, and the German fibre market remains the fastest growing market in Europe.

Deutsche GigaNetz is active in over 200 municipalities across 12 federal states throughout Germany and increasingly deploys record numbers of activated customers. The additional equity will support Deutsche GigaNetz's ambition to create a high-quality, future-proof fibre optic network in large clusters across these regions. The company also decided to use the capital for further expansion to develop new 100% fibre-to-the-home clusters, complete existing clusters, optimize construction and maximize performance in communities and cities for end customers.

Strong partners for fibre optics networks in Germany

With its core investors DWS Group, which belongs to Deutsche Bank, and InfraRed Capital Partners, a subsidiary of the Canadian financial services company Sun Life, Deutsche GigaNetz has strong partners who want to further capture the growth potential in the German fibre market.

Deutsche GigaNetz is also financed by an international banking consortium consisting of ABN-AMRO, Edmond de Rothschild, ING, KfW, KfW IPEX, LBBW, NordLB, Kommunalkredit Austria, SEB, SMBC and NatWest. The debt investors are also convinced of the necessity and realisation of a sustainable fibre-optic infrastructure for high-performance internet connections to support the German economy to be competitive both now and in the future.

"We are very proud to have our investors as well as a broad, international banking consortium on our side,” said Mirko Jerrentrup, CFO of Deutsche GigaNetz. "Their knowledge of the market and the funds they have provided will enable our company to continue to grow and create digitalisation through fibre networks with high impact and great added value for our customers.”

“Thanks to the excellent contribution of all employees and all our industry partners. The business is making excellent progress and remains fully in line with shareholders' expectations. We remain on track in a challenging market. As a result, our investors continue to extend their equity commitments and their trust in Deutsche GigaNetz,” commented Jan Georg Budden, CEO of Deutsche GigaNetz. “This further substantial investment is a vote of confidence in the performance of Deutsche GigaNetz. With this support and great innovative strength, we can drive forward the expansion of fibre-optic networks to provide even more municipalities and cities in Germany with fibre optics for the digital participation of all citizens. 100 % fibre is increasingly becoming the standard in many countries around the world and Germany needs to catch up from far behind. The potential in Germany is huge, as the fibre optic market is still virtually untapped with an enormously growing demand.”

About Deutsche GigaNetz GmbH

Deutsche GigaNetz GmbH, headquartered in Hamburg, operates a quality-oriented fibre-optic network expansion to the home (FTTH - Fibre to the Home) in Germany. Deutsche GigaNetz is thus making a significant contribution to the digitalisation of Germany by enabling all citizens to have access to the necessary infrastructure. With a focus on self-financed expansion, the company's goal is to build 100% fibre in the municipalities, and to use existing infrastructures and complementary subsidy projects. Deutsche GigaNetz is creating a sustainable quality network for the next generations through high-quality installation processes that are open to other providers on a non-discriminatory basis as an open access solution. With less energy consumption in network operation compared to previous copper networks, Deutsche GigaNetz also contributes to the ecological sustainability in the municipalities.