Open Fiber broadband financing nearing close

Open Fiber – the 50/50 Italian highspeed broadband joint venture between Enel and CDP – is expected to sign its €3.5 billion ($4.06 billion) project financing around the end of July according to market sources. The scheme is currently backed by a €510 million 15-month bridge loan from BNP Paribas, Societe Generale, and UniCredit, signed last year to fund initial roll-out.

The €6.5 billion project is an ambitious but innovative scheme. The network will be open to all telecoms operators and build-out will take advantage of existing power cable and utility pipe infrastructure - including parent company Enel’s installation of around 30 million smart electric meters over the next four years – thus significantly cutting infrastructure development costs.

BNP Paribas, Societe Generale and UniCredit are also lead arrangers for the €3.5 billion seven-year facility which has already garnered promised large ticket support from the EIB and sponsor CDP.