Hellenic Open Fiber (HOF), a subsidiary of Nova-Wind, a member of the United Group, the leading telecommunications and media provider in Southeast Europe, is raising capital of €80 million within the framework of the National Recovery and Resilience Plan, “Greece 2.0”, with the financing of the European Union – NextGenerationEU, through a loan agreement, signed on Monday, July 25, with Eurobank and Ethniki banks.
The signing of the loan agreement took place in the presence of the responsible for the implementation of “Greece 2.0”, Deputy Minister of Finance, Mr. Thodoros Skylakakis, the Commander of the Special Coordination Service of the Recovery Fund, Mr. Nikos Mantzoufas, the Managing Director of Nova-Wind, Mr. Panagiotis Georgiopoulos, the Deputy CEO and Head of Corporate & Investment Banking of Eurobank, Mr. Konstantinos Vassiliou and the General Manager of Corporate and Investment Banking of National Bank, Mr. Vassilis Karamouzis.
The loan has a duration of 10 years and will finance an investment project, totaling 100 million euros. Specifically, HOF, which aims to develop new generation networks, will utilize the resources of the loan agreement to accelerate the creation of Fiber to the Home networks nationwide. Of the 80 million euros that Hellenic Open Fiber, a subsidiary of Nova-Wind, will receive, 50 million euros come from the Recovery and Resilience Fund and 30 million euros from Eurobank and National Bank of Greece (in percentage 70% and 30% respectively). The remaining 20 million euros, required for the implementation of the investment plan, will be covered by HOF’s own funds.
Hellenic Open Fiber is the first company with a field of action in the field of digital investments, which applied for a loan agreement with the Recovery Fund, in February 2022. The resources will ensure additional liquidity of an extensive investment action plan of Nova – WIND for development digital technologies and new generation networks, highlighting the company as a strategic partner of the National Plan for the recovery and digital transformation of the country, while at the same time they will give impetus to the green transition and the development of the Greek region.
Nova-Wind’s total investment in next-generation technologies is set to exceed €1.3 billion by 2026 and mainly concerns the expansion of the fiber-to-the-home (FTTH) network and the national coverage of the 5G network, changing the fixed, mobile and internet market while enhancing its customers’ TV experience through EON content – the leading pay TV platform in South East Europe.
The Deputy Minister of Finance, Mr. Thodoros Skylakakis, said: “Today, another loan agreement is signed, within the framework of the National Recovery and Resilience Plan “Greece 2.0”, for the implementation of a large investment in the field of digital technologies and new generation networks . With the raising of 80 million euros, Hellenic Open Fiber (HOF), a subsidiary of Nova-Wind, will be able to accelerate the development of a fiber to the home network nationwide. The favorable terms provided for by the loan component of “Greece 2.0” have increased, steeply, the interest of investors in its utilization. The implementation of quality investments, in critical sectors of the economy, contributes, catalytically, to the achievement of the national goal for permanent growth “.
The Commander of the Special Coordination Service of the Recovery Fund, Mr. Nikos Mantzoufas, pointed out: “The signing of today’s loan agreement, with resources from the Recovery Fund, marks the beginning of a second major digital investment in the development of fiber-to-the-home connections (FTTH), with the utilization of the Recovery Fund. The loan part of the Recovery Fund has begun, dynamically, with the participation of the banking system, to substantially strengthen the productive Greek economy”.
The CEO of Nova – Wind, Mr. Panagiotis Georgiopoulos, noted: “The financing, using loan funds from the Hellenic Recovery and Resilience Mechanism, enables us to accelerate our investment plan to develop a fiber optic home (FTTH) network. Nova-Wind is an infrastructure investor with a long-term horizon. Today’s agreement reflects exactly that, our commitment to creating next-generation infrastructure that will accelerate our country’s digital transformation, ensuring access to technology for all our fellow citizens.”
For his part, Eurobank’s Deputy CEO and Head of Corporate & Investment Banking, Mr. Konstantinos Vassiliou, said: “The signing of the contract with Hellenic Open Fiber, a subsidiary of WIND, marks the inclusion of one of the largest digital transition investments , amounting to approximately 100 million euros in the Recovery and Resilience Fund program. Through the development of optical fiber networks, the project will essentially contribute to the upgrade of existing broadband infrastructures, while offering multiplier benefits to the country’s economy. At Eurobank, we feel particularly pleasure and honor for our role in the project, which is the largest financing by a Greek commercial bank to date within the framework of TAA, participating with a percentage of 70% of the bank financing scheme of the investment. The above highlights our strategic priority to offer integrated solutions to our customers, so that they can take advantage of including the important funds of the “Greece 2.0″ Plan, through sound and sustainable investment plans”.
The General Manager of Corporate & Investment Banking of National Bank, Mr. Vassilis Karamouzis, pointed out: “With the active participation of National Bank, the structuring and approval of total financing, amounting to 100 million euros, for the implementation of an important investment of the Nova group was successfully completed -Wind Hellas, decisive for the Digital Transition of the country. The new state-of-the-art optical fiber network of Hellenic Open Fiber creates technical specifications for wide access to high-speed Internet, contributing to the symmetrical upgrade of Infrastructure and Interconnectivity of an extensive number of areas throughout the territory. cooperation of our specialized Infrastructure & Networks financing unit Structured Financing and our mandated unit “Ethniki 2.0” for the inclusion of investments in the Recovery & Resilience Fund, 50% of the above financial package will come from the mobilization of Fund resources. The transaction is a “model transaction” for the Fund’s Digital Transition pillar, highlighting the role of the National Bank in the implementation of the National Recovery Plan.
Source: Capital
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