(Bloomberg) -- Open Fiber SpA’s shareholders and banks agreed to secure about €3 billion ($3.1 billion) of financing, including €2 billion of new debt and equity in a move aimed at shoring up financial strains at the state-backed fiber carrier.
Open Fiber’s board of directors acknowledged on Friday the commitment by the firm’s shareholders, Italy’s state lender Cassa Depositi e Prestiti and Macquarie Group, to invest about €1 billion, a company representative told Bloomberg. In June, Open Fiber agreed on the main financing plan but lacked final approval.
Banks including UniCredit SpA and BNP Paribas SA will provide loans for €1.05 billion while an additional €900 million of fresh funds would come from unlocking existing credit lines, the Open Fiber representative said.
Open Fiber has been seeking new money as it faces higher-than-expected costs to build out its network in rural areas.
The move may allow Open Fiber to renew discussions on Italy’s long-delayed plan to build a so-called single network through a merger with Telecom Italia SpA’s former assets, Bloomberg News reported this year. The former phone monopoly in July completed the sale of its grid to KKR & Co. in a €22 billion deal to help it slash debt.
The goal of the single network plan would be to avoid billions of euros in duplicate investments in Italy. It’s in line with the Giorgia Meloni government’s desire to boost digital services in the country.
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