Additional long-term financing for infrastructure linked to sustainability aligns operator’s environmental, social and governance, and financial frameworks
Pan European network provider euNetworks has completed refinancing its existing debt as well as raising “significant” undrawn, committed debt facilities. The operator said this will fund the construction and development of more network infrastructure in Europe. The new long-term infrastructure financing solution provides total debt facilities of €1,260 million.
The refinancing, which was driven by two of euNetworks’ existing investors, Stonepeak and Investment Management Corporation of Ontario (IMCO), attracted significant interest from infrastructure-focused financial institutions, reflecting the strong conviction in euNetworks’ position, according to the company.
The financing extends the sustainability link established in the previous debt raise in 2021, reinforcing euNetworks’ commitment to its ESG agenda. It includes a large committed revolving capex facility to support future organic growth opportunities and M&A activity, and establishes a long-term financing platform provided by 14 funders – ABN AMRO Bank, AXA IM Alts, Banco de Sabadell, CIBC UK, DNB (UK) Limited, Export Development Canada, Intesa Sanpaolo (IMI CIB Division), LBBW, Lloyds Bank, MUFG Bank, National Australia Bank, NIBC, Nord/LB, and Royal Bank of Canada.
“This debt financing enables us to sustain our growth alongside our customers, to further invest in and expand our network infrastructure footprint,” said euNetworks CFO Katherine Alexakis (above). “The substantial liquidity accessible through this process underscores the robust value proposition and fundamental infrastructure delivered by euNetworks.”
She added: “We’re pleased that this incremental debt raise allowed us to continue to incorporate our dedication to sustainability by integrating ESG-linked Key Performance Indicators, and we extend our gratitude to our lenders for their support as we continue to construct and deliver critical bandwidth infrastructure.”
“Europe presents numerous attractive capital prospects. This incremental, long-term infrastructure financing further empowers euNetworks to leverage its distinct position in the region,” said Stonepeak managing director Cyrus Gentry. “As a market leader in data centre connectivity in Europe, euNetworks consistently sets itself apart in an increasingly interconnected society, where key fibre networks are the bedrock of the digital infrastructure landscape we see ahead.”
“We see tremendous growth opportunities in the bandwidth infrastructure sector, driven by an ever-increasing demand for data transmission,” said IMCO managing director and head of global infrastructure Matthew Mendes. “This financing will enable euNetworks to continue expanding and densifying its premier footprint, building the next generation network to serve this demand. IMCO is proud and excited to play a role in advancing euNetworks’ leadership position in European connectivity.”
euNetworks owns and operates fibre networks in 18 cities as well as a long-haul network that spans 45,000 route kilometres across 17 countries. The telco connects to more than 536 data centres. Last month, Brussels became the operator’s 18th city network following the addition of a duct-based fibre network in Belgium through acquisition in April 2023. The 1,660 kilometres of fibre network acquired added unique routes in Brussels and long haul routes across Belgium.
The Brussels network comprises 41km of duct and high-fibre-count network, connecting five data centres including: LCL Brussels-North, Digital Realty BRU1, BRU3 & BRU4, AtlasEdge Brussels BRU001.