📋 Tender Overview
The European Investment Bank (EIB) is lending fibre broadband provider Deutsche Glasfaser (DG) €350 million to expand its network in Germany. The project will make high-speed internet available to some 460,000 homes and businesses in rural areas that lack high-capacity broadband.
The network will provide retail internet services that are as much as 10 gigabits per second (Gbps) – faster than the broadband speed to which most consumers currently have access. The average download speed in most European countries is in the range of 100 megabits per second (Mbps) or below. Fibre optic infrastructure can support much higher bandwidth than traditional copper-based broadband technologies like DSL, VDSL or cable.
This project benefits from risk sharing under the InvestEU programme of the European Union. It aims to address a lack of investment in high-speed digital infrastructure in less populated areas, where the costs and risks are typically higher for providers.
“Improving digital services in rural areas will enhance living conditions and make these regions more attractive,” said EIB Vice-President Nicola Beer. “At the same time, it will safeguard jobs and support both individuals and businesses in reaching their full potential. It makes these regions ‘future-proof’ by accommodating the growing bandwidth demands of modern internet applications – from cloud computing to remote work and education – and emerging technologies like virtual reality and the Internet of Things. Bridging the digital divide between rural areas and urban centres is essential to help rural regions compete more effectively, driving both economic growth and social progress.”
European Commissioner for the Economy, Paolo Gentiloni, said: “The InvestEU programme is bringing high-speed internet for 460,000 homes and businesses in underserved areas in Germany, in partnership with the European Investment Bank and Deutsche Glasfaser. This investment will help close the digital divide and allow businesses to grow and create jobs. This is a tangible example of a Europe that invests in the future and leaves no one behind.”
The EIB loan comes on top of a multi-billion-euro financing from commercial banks that DG secured in 2022 and 2024, enabling the company to expand a network currently spanning more than 2 million homes that have the potential to be connected. By the end of 2026, DG aims to make available fibre connections to over 3 million households in Germany, with a longer-term ambition to reach up to 6 million households in the country. The EIB loan has a positive signalling effect for further fundraising.
”We are pleased that the EIB is supporting us on our journey to bridge the digital divide in rural parts of Germany,” said DG Chief Executive Officer Andreas Pfisterer, “As the leading fibre player in rural and sub-urban Germany, we are clearly focused on bringing consumers and businesses in these areas to a state-of-the-art fibre network. Our integrated model of retail and wholesale via our open access platform is a key differentiator in the market and is an attractive offer for both the municipality and the citizens.”
Anna Dimitrova, Chief Financial Officer of DG added: “I would like to thank the EIB for its trust in us and its commitment in pushing digital infrastructure in Germany. The new EIB loan is part of a broader ESG-linked financing package that will fund our projects over the next two plus years. Next to the EIB, our funding is based on a large consortium of banks and financial institutions, with most of them supporting us already for many years, being the fibre to the home pioneer in rural Germany.”
Germany has been relatively slow in rolling out fibre broadband networks compared to other European countries. Only about 35% of households reached full-fibre connectivity in 2023 as opposed to an average 64% across the EU plus the UK. This project will support the targets of the German Digital Strategy and the European Digital Compass to provide all households with gigabit connectivity by 2030.
