Press / GlobalConnect successfully raised EUR 1 billion in new ESG linked financing, enabling sustainable growth
GlobalConnect Group has raised additional financing to fund its ambitious growth plan, as a consortium of Nordic and international banks and financial institutions committed additional Senior Debt Facilities of a total of EUR 1 billion. Sustainability incentives were also introduced with the new facilities, with the effect of lowered interest rate margin upon meeting targets for predetermined sustainability KPIs.
In June 2021, GlobalConnect completed an extensive refinancing where a new Senior Debt Facility structure of €2,700m was committed from a complementary group of leading Nordic and international lending institutions. The financing package included a combination of drawn term loans and CAPEX facilities for facilitating further growth. Now, GlobalConnect has €1,000m incremental commitments via an Additional Facility at the same commercial terms and similar conditions as the existing financing. With strong support from existing lenders, the bank syndicate was further broadened with four new lenders.
“The refinancing comes well into play as our strategy is to continue our growth journey, both organically as well as through acquiring new assets. We will keep exploring new acquisitions across all our markets, given that they fit our business model, contributing to an even stronger customer offering as well as a connected society”, says Henrik Schibler, Group CFO, GlobalConnect.
In 2021, GlobalConnect made several acquisitions, including Telenor Sweden’s SDU assets and its communication operator Open Universe. The Northern European digital infrastructure player also kept expanding organically, rolling out its fiber network and growing its data center capabilities across the region, catering to an evolving demand for connectivity services among enterprises and private consumers.
The introduced sustainability incentives are in alignment with GlobalConnect’s ESG strategy, consisting of KPIs linked to the implementation of science-based targets, diversity targets and employee satisfaction goals throughout GlobalConnect Group.
“Being able to incorporate an ESG linked financing validates our own and our lenders’ joint commitment to sustainability, contributing to a healthier industry as well as a better today and tomorrow”, says Henrik Schibler.
GlobalConnect Group operates an expansive high-capacity fiber network, covering 150,000 km across Sweden, Norway, Denmark, Germany and Finland. It also operates 20 energy efficient data centers, which makes GlobalConnect the largest digital infrastructure player in the region with more than 30,000 enterprise customers and 700,000 connected households. In 2021, the Group invested more than €500m in network expansion, making GlobalConnect the top digital infrastructure investor in the Nordic region.