EIB Supports Deutsche Glasfaser with €350 Million Loan to Expand High-Speed Internet in Rural Germany

EIB Supports Deutsche Glasfaser with €350 Million Loan to Expand High-Speed Internet in Rural Germany

(IN BRIEF) The European Investment Bank (EIB) has granted a €350 million loan to Deutsche Glasfaser to expand fibre-optic broadband access to around 460,000 rural homes and businesses in Germany. This initiative, supported by the EU’s InvestEU programme, addresses the digital infrastructure gap in underserved areas by offering high-speed internet up to 10 gigabits per second. The loan builds on Deutsche Glasfaser’s existing financing and supports the company’s goal of reaching over 3 million households by 2026. The project aligns with Germany’s Digital Strategy and the EU’s goal of achieving gigabit connectivity for all households by 2030.

(PRESS RELEASE) LUXEMBOURG, 21-Sep-2024 — /EuropaWire/ — In a significant step towards improving rural internet access, the European Investment Bank (EIB) has granted Deutsche Glasfaser (DG) a €350 million loan to expand fibre-optic broadband services in Germany. This initiative is expected to bring high-speed internet connectivity to approximately 460,000 households and businesses located in underserved rural regions, where digital infrastructure investment has historically lagged due to higher costs and risks.

The fibre-optic network, set to deliver internet speeds up to 10 gigabits per second (Gbps), will significantly outpace the current broadband capabilities available to most European consumers, where average speeds typically remain below 100 megabits per second (Mbps). This improvement aligns with the European Union’s goals under the InvestEU programme, which supports this loan and aims to reduce the digital divide between rural and urban areas.

“This project not only improves the quality of life in rural regions but also strengthens their economic potential,” said EIB Vice-President Nicola Beer. “It’s about ensuring that businesses and residents have access to the tools they need to thrive in an increasingly digital world. From remote work to advanced technologies, the demand for high-speed internet is only growing, and this project is making these regions more competitive for the future.”

European Commissioner for the Economy, Paolo Gentiloni, also emphasized the transformative impact of this investment, noting that high-speed internet access for 460,000 homes and businesses will help close the digital divide and promote job creation in these areas. The project, he said, exemplifies the EU’s commitment to investing in a more connected future.

The EIB loan complements Deutsche Glasfaser’s prior multi-billion-euro funding from commercial banks, secured in 2022 and 2024. DG plans to make fibre broadband accessible to over 3 million households by 2026, with an ambitious goal of extending this to up to 6 million homes across Germany in the longer term. The EIB’s backing also serves as a positive signal to potential future investors, highlighting the importance of bridging the digital gap in Germany.

DG’s CEO Andreas Pfisterer expressed gratitude for the EIB’s support, stating, “As the leading provider of fibre in rural Germany, we are committed to offering high-speed internet to consumers and businesses alike. Our approach of combining retail and wholesale services via our open access platform is a unique offering that benefits municipalities and residents.”

Germany has faced challenges in rolling out fibre-optic networks, with only 35% of households connected to full-fibre by 2023, compared to an EU average of 64%. This project aims to accelerate the country’s progress towards achieving the German Digital Strategy and European Digital Compass goals of providing all households with gigabit internet by 2030.

Background information

The European Investment Bank (EIB) is the long-term lending institution of the European Union. It finances sound investments that contribute to EU policy objectives. EIB projects bolster competitiveness, drive innovation, promote sustainable development, enhance social and territorial cohesion, and support a just and swift transition to climate neutrality. The EIB Group, which also includes the European Investment Fund (EIF), signed a total of €88 billion in new financing for over 900 projects in 2023. These commitments are expected to mobilise around €320 billion in investment, supporting 400 000 companies and 5.4 million jobs.

The InvestEU programme provides the European Union with crucial long-term funding by leveraging substantial private and public funds in support of a sustainable recovery. It also helps mobilise private investments for the European Union’s policy priorities, such as the European Green Deal and the digital transition. The InvestEU programme brings together under one roof the multitude of EU financial instruments currently available to support investment in the European Union, making funding for investment projects in Europe simpler, more efficient and more flexible. The programme consists of three components: the InvestEU Fund, the InvestEU Advisory Hub and the InvestEU Portal. The InvestEU Fund is implemented through financial partners that will invest in projects using the EU budget guarantee of €26.2 billion. The entire budget guarantee will back the investment projects of the implementing partners, increase their risk-bearing capacity and thus mobilise at least €372 billion in additional investment.

Deutsche Glasfaser Group is the leading fibre broadband provider in rural and sub-urban Germany. As a FTTH pioneer and industry leader, Deutsche Glasfaser plans, builds and operates open-access fiber networks for private households, businesses and public institutions. The company aims to roll-out fiber networks across the nation, thereby contributing significantly to Germany’s digital transformation. With innovative planning and construction methods, Deutsche Glasfaser is the technology leader for fast and cost-efficient FTTH deployment. Deutsche Glasfaser is backed by the experienced digital infrastructure investors EQT and OMERS.

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SOURCE: European Investment Bank