Infracapital has secured a financing agreement of €895 million for Infrafibre Germany (IFG) to enhance fibre infrastructure in underserved areas of Southern Germany, targeting the connection of 510,000 homes by 2026.

Target Information

Infrafibre Germany (IFG) is a notable investor focused on developing high-speed fibre optic networks in underserved and rural regions of Southern Germany. Established to bridge the digital divide in areas lacking robust broadband infrastructure, IFG aims to deploy both fibre to the cabinet (FTTC) and fibre to the premises (FTTP) solutions. With the financial backing of Infracapital, IFG has made significant progress, having already connected approximately 150,000 homes, with a target of reaching 510,000 homes passed by 2026.

The total facility size for the current financing agreement stands at €895 million, which includes €500 million in committed upfront financing as well as a €395 million uncommitted accordion tranche. This funding not only supports IFG's ambitious growth trajectory but is also pivotal for its plans to enhance connectivity in one of Europe’s most underserved broadband markets.

Industry Overview in Germany

The broadband market in Germany has been characterized by significant gaps in coverage, especially in rural areas. Despite being one of Europe's largest economies, the country continues to face challenges in provi