TDF and Banque des Territoires have entered a new phase in their partnership, with Banque des Territoires acquiring a stake in TDF Fibre, a company previously 100% owned by TDF. At the same time, bank financing of 735 million euros was raised from major French banking institutions.
Banque des Territoires thus becomes a shareholder in TDF Fibre, which owns 100% of the capital of the project companies Val d'Oise Fibre, Yvelines Fibre, Val de Loire Fibre and Anjou Fibre. These four TDF project companies deploy, operate and market fiber optic networks in low-density areas of the Val d'Oise, Yvelines, Loir-et-Cher, Indre-et-Loire and Maine-et-Loire départements.
TDF and Banque des Territoires had already been co-shareholders since 2018 in three project companies - Val d'Oise Fibre, Val de Loire Fibre and Anjou Fibre - with 70% and 30% respectively.
This transaction, which comes at a time when fiber rollouts in territories awarded to TDF are well underway or nearing completion, simplifies TDF Fibre's shareholding structure: TDF and Banque des Territoires now hold 79.5% and 20.5% of the capital respectively.
Dedicated financing for TDF Fibre with "Social Loan" label
At the same time as reorganizing its capital, TDF Fibre raised a bank loan to increase its financial resources in order to ensure both the development of existing networks and future needs associated with the takeover or deployment of new networks.
This loan, dedicated to projects to develop fiber coverage in sparsely populated areas in France, benefits from the "Social Loan" label (principles published by Loan Market Association "LMA", the loan Syndications and Trading Association "LTSA" and the Asia Pacific Loan Market Association "APLMA" since April 2021).
This 7-year, non-recourse financing facility, for a total of 735 million euros, is fully underwritten by Société Générale Corporate & Investment Banking and Crédit Agricole Corporate & Investment Banking, and is intended to be syndicated with other banks and institutional lenders. Société Générale acted as financial and ESG advisor for the Social Loan.
A shared ambition to bring ultra-high-speed broadband to new territories
TDF Fibre's ambition is to be the benchmark industrial partner for local authorities in providing fixed broadband connectivity throughout France. With a shared mission to reduce the digital divide in France, in particular through the deployment and operation of telecommunications infrastructures, TDF and Banque des Territoires wish to extend the existing scope of their fiber activities. TDF Fibre will be responsible for the deployment, management or takeover of new FttH (Fiber to the Home) and FttO (Fiber to the Office) networks in France, in addition to deployment and marketing in existing territories (Val d'Oise, Yvelines, Loir-et-Cher, Indre-et-Loire and Maine-et-Loire).
Olivier Huart, Chairman and CEO of the TDF Group, states:
"We are delighted to strengthen this partnership with Banque des Territoires, with whom we share the mission of deploying neutral telecommunications infrastructures in France. The extension of this partnership underscores the importance of fiber for the TDF group, by giving TDF Fibre a public shareholder that is the benchmark partner for local authorities when it comes to deploying very high-speed telecommunications networks. TDF Fibre now has the industrial, financial and operational resources to strengthen its position as a key player in fiber infrastructure in France.
Antoine Darodes, director of the department in charge of the digital transition of territories at Banque des Territoires, declares:
"Banque des Territoires provides loans and investment support to 80% of French départements for their ultra-high-speed broadband coverage projects. Over the past 10 years, it has devoted nearly a billion euros of its own funds to investing in broadband and ultra-broadband, and has granted more than 800 million euros in loans to 40 départements for the development of their public-initiative networks. It was therefore important for us to support TDF Fibre in acquiring ambitious financial resources, in particular with the "Social Loan" label.