Future Fiber, APG and SiFi Networks raise $350M

Future Fiber, APG and SiFi Networks’ open-access fiber-to-the-home (FTTH) network, has raised $350 million 7-year financing, enabling it to scale its FTTH network reach and smart city capabilities via its fiber wholesale business model. The financing will be used alongside APG’s $500 million equity investment in Future Fiber.

A joint venture between APG Group NV and SiFi Networks America Limited, Future Fiber said it will contribute to bridging the digital divide in the US where over one-third of households do not have access to high-speed internet by offering high-speed fiber connections to those underserved communities.

The $350 million financing is aligned to a flexible European-style fiber debt structure and consists of a capex facility to fund the rollout program, alongside an RCF, which facilitates flexibility for Future Fiber to deliver its business plan ambitions. The financing also includes mechanisms which are aligned to Future Fiber’s strong ESG commitment to bridge the digital divide and provide fair access to internet in low socio-economic areas, including alignment to the Green Loan Principles.

PATRIZIA Infrastructure is acting as investment manager for Future Fiber on behalf of APG.

Bart Saenen, Senior Porfolio Manager at APG, said the new financing recognizes the growing recognition of fiber-based broadband. “We are extremely pleased with the outcome of this first-of-a-kind financing for Future Fiber’s US rollout that contributes to APG’s ambition to support digitalization and the energy transition, as fiber is more energy-efficient than copper or cable,” he said. “Importantly, the financing, alongside APG’s $500 million equity investment, will help deliver an attractive and sustainable return for our pension fund clients and their participants. APG looks forward to our continued partnership with SiFi, PATRIZIA, and our lending partners in Future Fiber in the years to come.”

James Courtenay-Evans, CFO at SiFi Networks, agreed and added that the financing model allows it to flexibly expand its network reach. “Alongside APG’s equity commitment, the financing package allows us to deploy our market-leading, open-access fiber capabilities through the Future Fiber venture, and we are extremely excited to see the benefit from our citywide fiber optic networks and smart city applications in underserved US cities,” he said.