TNG secures additional €175 million debt funding for its FTTH roll-out across Germany

"This financing round has demonstrated TNG's success in profitably deploying FTTH networks in Germany," says ICG Infra's Frank Heiss

Strong interest leads to transaction oversubscription
NAB and an institutional investor join as new lenders
Debt package complemented by additional equity commitments from funds managed by the ICG Infrastructure team (“ICG Infra“)

TNG Glasfaser GmbH (“TNG” or “the Company”), headquartered in Kiel, Schleswig-Holstein, one of the leading companies for the expansion of fibre broadband networks in Germany, has signed an agreement to secure an additional €175m of debt commitments (accordion facility) under its existing financing package to support its fibre-to-the-home (“FTTH“) deployment in rural and suburban areas across Germany.

The secured debt financing of €175 million is in addition to the existing debt financing facilities of €325 million signed in November 2022 with an increase option of €150 million. TNG received substantial support from both existing and new lenders, resulting in the oversubscription of the transaction. This excellent result is the consequence of TNG’s proven track record in implementing ambitious and profitable growth plans, thanks to its extensive experience and integration along the entire FTTH value chain. An institutional investor, National Australia Bank (“NAB“), KfW, and Kommunalkredit participated in the successful upsizing and implementation of this option. In addition, TNG receives a further increase option of €100 million.

The debt package is complemented by additional equity commitments from ICG Infra, TNG’s majority shareholder.

This new financing is a testament to TNG’s success in deploying and commercialising FTTH networks in rural and suburban areas across Germany. The capital will support TNG in its plan to reach a footprint of more than 0.5 million homes passed over the coming years in the states of Schleswig-Holstein, Hesse and Baden-Württemberg.

Sabine Domes, CFO of TNG, states:

This additional capital allows us to build on our success and pursue our expansion targets over the coming years, supporting current and new projects. We are pleased to have secured the backing of two further international infrastructure lenders in light of TNG’s strong track record and strategic positioning.

Frank Heiss, Managing Director and Head of the DACH region at ICG Infra, adds:

This financing round has demonstrated TNG’s success in profitably deploying FTTH networks in Germany. Since our initial investment in 2021, TNG’s fibre network has grown eightfold and the Company is perfectly positioned to capitalise on the significant further growth potential in the German FTTH market. This aligns with the ICG Infra team’s strategy of supporting strong management teams in achieving their ambitions. We are pleased to increase our commitment and look forward to supporting TNG’s continued growth.

TNG was advised by Macquarie Capital (financing), Altman Solon (commercial due diligence), Latham & Watkins (legal due diligence), Deloitte (financial due diligence), Freshfields (borrowers’ counsel) and Hogan Lovells (lenders’ counsel).

– Ends –

For further information please contact:

ICG

Clare Glynn
+44 20 3545 1395
[email protected]

Catherine Armstrong
+44 20 3545 1850
[email protected]

TNG Stadtnetz GmbH

Friederike Hopp
[email protected]

About ICG

ICG provides flexible capital solutions to help companies develop and grow. We are a leading global alternative asset manager with a 35-year history, managing $106bn of assets* and investing across the capital structure. We operate across four asset classes: Structured and Private Equity, Private Debt, Real Assets, and Credit.

We develop long-term relationships with our business partners to deliver value for shareholders, clients, and employees, and use our position of influence to benefit the environment and society. We are committed to being a net zero asset manager across our operations and relevant investments by 2040.

ICG is a member of the FTSE 100 and listed on the London Stock Exchange (ticker symbol: ICG). Further details are available at www.icgam.com. You can follow ICG on LinkedIn and Instagram.

*Past performance is not a reliable indicator of future results; as at 30 September 2024.

About ICG Infra

The ICG Infra team manages c.€3.4bn in Europe and seeks to partner with successful management teams and founders to provide growth capital to mid-market businesses across the energy transition, digital and mobility sectors. The team leverages ICG’s DNA of bespoke capital solutions, investing across capital structures in equity and structured equity instruments creating a defensive risk-return profile for its portfolio whilst seeking to deliver consistent returns for its investors.

About TNG

TNG was established in 1997 and has since grown into a prominent supra-regional FTTH provider in Germany, with a current reach of over 250,000 homes passed.

TNG has established itself as a leading telecommunications company in the German market and is one of the largest providers of fibre broadband. In 2023, TNG acquired the former sdt.net AG in Baden-Württemberg. In addition to Kiel (Schleswig-Holstein) and Breitenbach (Hesse), TNG now has a location in Aalen (Baden-Württemberg), which is driving the fibre optic expansion in southern Germany.

TNG has developed a strong FTTH track record based on a highly vertically integrated business model, including its own planning and construction departments. This allows the company to offer its customers fast and reliable fibre optic solutions and telecommunication services.