The Connecting Europe Broadband Fund (CEBF) contributes to the achievement of the European Gigabit Society objectives mainly in underserved areas. The fund, which had its first closing in June 2018 with EUR 420 million of committed capital, had a second closing in July 2020, with two new institutional investors joining for a total of EUR 50 million, hence raising the total assets of the fund one step closer to the original target of EUR 500 million. By providing the initial capital needed by project promoters, the CEBF helps them getting additional financing and expand their project further.

Photo of the European Investment Bank

The projects supported by the Connecting Europe Broadband Fund should make a significant contribution to the targets of the European Gigabit Society by deploying networks upgradable to 1 Gbps and installing state of the art technology in predominantly underserved areas.

To date, the Fund has closed five transactions for a total committed capital of EUR 123 million. In addition, two transactions have been signed in Netherlands and Italy for a total of EUR 60 million, pending final financial closing. Two projects in Romania and Finland, representing total commitments of EUR 60 million, are in the very last stage of due diligence (a comprehensive assessment of the risks and returns for the project). Six other transactions (in FI, IT, SE, PT and ES) have passed the first stage of due diligence, for total commitments of EUR 175 million. Fourteen other projects are under consideration. Total commitments across the twenty-nine projects currently included in the pipeline amount to potential investments of up to EUR 418 million.

Following greater traction on the investment pipeline and sustained efforts by the Fund Manager, a second closing took place in July, allowing two new institutional investors from Italy and Germany to commit a total amount of EUR 50 million to the Fund. Consequently, private investor participation in the Fund raised to a total of EUR 75 million, while total fund size increased to EUR 470 million – close to the target of EUR 500 million set at the launch of the Fund two years ago.