Banks Slash €350M Broadband Loans in €7B Restructuring as 65% of Altnets Face Refinancing
LYG•European banks are divesting overleveraged broadband alnet exposure, selling roughly €350 million of Deutsche Glasfaser loans to Strategic Value Partners at discounts in a €7 billion debt restructuring. About 65% of European fiber providers must refinance debt totalling €85 billion raised from 2021 to 2024 after rollout plans fell short.
1. Banks Exit Altnet Exposure
Banks with fiber-optic alnet exposure are selling loans at discounts to slash risk, reflecting frustration with failed rollout targets and rising financing costs.
2. Major Loan Sales to Distressed Funds
In recent weeks, lenders sold about half of DNS:Net’s bank debt to FitzWalter Capital and transferred roughly €350 million of Deutsche Glasfaser loans to Strategic Value Partners as part of a €7 billion restructuring, while G.Network’s debt and equity were acquired through administration.
3. Distressed Funds Enter Infrastructure Finance
Strategic value and other distressed debt funds are increasing their presence in infrastructure financing, a market traditionally dominated by banks, as lenders seek to crystallize losses and reduce concentrated alnet exposure.
4. Looming Refinancing Challenges for Altnets
About 65% of European fiber companies must refinance debt totalling €85 billion raised from 2021 to 2024 as higher inflation and financing costs undermine previously debt-fueled expansion plans.
