Construction of an energy-efficient 5G network:Telefónica Deutschland receives EUR 450 million EIB loan

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Credits: Telefónica Deutschland
The concluded EIB loan has a term of eight years.
Telefónica Deutschland has secured a loan from the European Investment Bank (EIB) amounting to 450 million euros. The company intends to use the proceeds to build an energy-efficient 5G network and to upgrade its LTE network. In December, Telefónica Deutschland announced that it would significantly increase its investment in the mobile network in 2020 and 2021. On the one hand, the company will significantly increase its network capacity in cities in order to remain a market leader there. On the other hand, it will close so-called white spots in rural areas in order to win new customers there.

  • Loan provides funding for mobile broadband deployment and strengthens innovation
  • Telefónica Deutschland further improves its financing profile
  • EIB sets high sustainability standards for borrowers

"This loan will enable us to quickly build an energy-efficient 5G network and thus meet our customers' rapidly growing demand for mobile data," said Markus Rolle, CFO of Telefónica Germany. "We are particularly pleased to be working with the EIB again, which as a European climate bank plays an important role for the future of our planet."

Larger data volumes with lower energy consumption

Credits: European Investment Bank (EIB)
The EIB supports only selected financing projects
The EIB only supports financing projects that meet high environmental and social standards. 5G technology allows the transport of larger data volumes with lower energy consumption per data unit. As early as 2016, the financial institution financed the consolidation of Telefónica Deutschland's mobile communications network with a loan linked to ambitious energy-saving targets. "5G, the next generation mobile communications standard, is coming at a fast pace", said Ambroise Fayolle, EIB Vice-President responsible for innovation and the Bank's activities in Germany. "It will deliver higher speeds and improved mass connectivity, enabling citizens and businesses to benefit from highly responsive and reliable networks. This will greatly enhance existing wireless applications and open up entirely new business opportunities". This is the basis for innovation and growth in Europe, a goal which, along with climate protection, is a top priority for the EU bank. Telefónica Deutschland is further improving its financing structure through the eight-year EIB loan concluded via Telefónica Germany GmbH & Co OHG. Telefónica Deutschland had already concluded a syndicated loan of EUR 750 million in December, the interest margin of which is linked to an external sustainability rating.