BMVI and KfW to launch funding programmes for broadband expansion in Germany

Scheuer: New financial stimulus for digital infrastructure in Germany

Starting 1 April 2020, the Federal Ministry of Transport and Digital Infrastructure (BMVI) and KfW will support the long-term and nationwide expansion of fibre-optic networks in Germany with two programmes for private and municipal companies, the “Digital Infrastructure Investment Loan” and the “KfW Digital Infrastructure Syndicated Loan”.

Federal Minister Andreas Scheuer states: “By 2025, we want to have gigabit networks throughout Germany. To this end, we are strengthening private and municipal investment in this area through two new KfW programmes. The investment loan makes expansion measures more attractive thanks to favourable interest rates, while the syndicated loan provides security through risk assumption. The current situation shows just how important it is to provide high speed across the country: The digital infrastructure keeps Germany running – be it for working from home or for video calls with friends and relatives - we have never been more dependent on powerful networks than today.”

Dr Ingrid Hengster, Member of the KfW Executive Board, says: “In its coalition agreement, the German Federal Government has set itself the goal of a nationwide fibre-optic network in Germany by 2025. We vigorously support this goal. I am convinced that, with our new funding programmes, we are providing investors with needs-based and extremely attractive financing instruments. Capital is thus available for high-speed Internet throughout Germany.”

The “Digital Infratructure Investment Loan” offers low-interest, long-term financing for investments to expand fibre-optic networks and is available through KfW financing partners, usually banks and savings banks. BMVI funds are used to reduce the interest rates and, with terms of up to 30 years and fixed-interest periods of up to 20 years, they combine favourable terms and conditions and a high degree of planning security.

KfW also offers a new funding programme with tailor-made financing solutions for projects with more complex and individual financing requirements: through the “KfW Digital Infrastructure Syndicated Loan”, KfW participates in the financing of projects through banking syndicates. KfW provides direct loans and assumes credit risks at the same conditions as the other financing partners. With the two loan programmes, BMVI and KfW are expanding the existing range of federal funding for the expansion of fibre-optic networks in Germany.