Netcity Telecom S.A. closed the contracting of a club loan from BCR and BRD for the financing of the Netcity project
Bucharest, 29 April 2022 – Netcity Telecom secured the financial component of the Netcity project by contracting a EUR 55m loan to refinance 100% of the existing debt at project level and to finance the continuous expansion of the Romanian capital’s underground fiber telecommunications network.
The structuring of this new, long term finance package is also adapted for the objectives and continuous development needs of the Netcity project. The network extension will assist the company and the Municipality to attain the targets of the concession, that include the increase in urban resilience of the city, in line with the company’s sustainable development objectives.
The financing was secured by a EUR 55M club loan comprised of Banca Comerciala Romana and BRD Groupe Societe Generale acting as joint mandated lead arrangers and lenders, with BCR also as documentation and security agent and Erste Group Bank as facility agent.
Today, Netcity’s underground network of over 1,760 km covers the main boulevards in Bucharest and connects over 30.000 buildings in the city. The network will be under continuous development with the goal of doubling the coverage over the next four years and reaching extensive coverage of Bucharest metropolitan area in the coming years.
About Netcity Telecom S.A.
Netcity Telecom S.A. was founded in 2007 for the buildup and operation of the “Netcity” metropolitan fiber network of the Bucharest Municipality and for facilitating the underground migration of the aerial cables.
The Netcity Project brings important benefits for Bucharest by creating a safe and modern underground telecom network, so that the city inhabitants can benefit from highest-quality services. Through a 100% private investment, the Netcity network is the first and the largest such network in Romania, being around 10 times more extensive than the largest comparable networks in other cities. Further information is available on www.net-city.ro.