Banks Sell €350 M Altnet Loans as 65% Face €85 B Refinancing Crunch
Banks with exposure to heavily indebted alternative broadband providers have sold roughly €350 million of loans to distressed debt funds at steep discounts, reflecting lenders’ weariness with cash-strapped altnets. Industry surveys indicate around 65% of European fiber operators must refinance over €85 billion of debt by 2028, signaling mounting funding risks for the sector.
1. Banks Offload Altnet Loans
Lenders with exposure to smaller fiber-optic challengers have begun selling large tranches of bank debt at discounts, exemplified by a €350 million loan sale to a distressed debt fund following a private equity sponsor’s decision to halt further funding.
2. Distressed Funds Capitalize on Discounts
Specialized debt funds have acquired significant stakes in both debt and equity of struggling altnets, taking control of assets through administration processes after original owners wrote down equity values to zero.
3. Sector-Wide Refinancing Challenge
Surveys show that approximately 65% of European alternative broadband operators need to refinance over €85 billion of outstanding debt by 2028, as higher inflation and increased borrowing costs strain cash flows and jeopardize planned network expansions.
