German HSH finances Portuguese DSTelecom with 50 million

DTS's telecommunications "branch", which has already invested 120 million euros in infrastructure for fibre optic network coverage in Portugal, signed a 50 million financing agreement with the German bank HSH Nordbank. Objective: cover more than 500 thousand homes by 2020.

The Portuguese fibre optics wholesaler DSTelecom, established as a market leader, has already invested over 120 million euros in FTTH network infrastructure (fibre to the home) in Portugal, and has now entered into a long-term loan with the German bank HSH Nordbank, to apply in the implementation of the company's project of covering over 500,000 homes by 2020.

"The non-recourse debt, in the form of covered bonds with a 12-year maturity, totals 50 million euros" added José Teixeira, Chairman of DSTelecom, to the "Negócios" newspaper.

According to the same official, "this is the first financing for a broadband project in Portugal, which focuses in areas of lower population density" and it "will allow DSTelecom to optimise the financing of our investment plan".


José Teixeira is "very pleased with this funding, not only because it will pave the way for DSTelecom’s continuous growth, but also for the involvement and compromise of HSH" with the project of the company from Braga.

Nicolas Blanchard, member of the Board of Directors of HSH, classified this transaction as "an excellent starting point for establishing a new relationship with DSTelecom", also expressing his satisfaction for, along with their client, "financing the implementation of FTTH, which is of extreme importance to the Portuguese economy".

DSTelecom assures that the HSH Nordbank "is at the forefront of fibre optics financing in Europe and became an expert in the development of fibre optic network implementation projects", having "funded at least 1 billion euros in digital infrastructure, such as broadband and datacentres, over the past three years".

HSH Nordbank was one of the biggest victims of the financial crisis in Germany. Detained by the German States of Hamburg and Schleswig-Holstein, it was rescued with a State aid of 13 billion euros, and was sold the past year, to the US private equity groups Cerberus and JC Flowers, for one billion euros.

In the transaction between DSTelecom and the HSH Nordbank, Morais Leitão participated as legal advisor for DSTelecom and HSH was represented by Campos Ferreira, Sá Carneiro & Associados.

DSTelecom is an open access, neutral fibre optic network provider for lower population density areas in Portugal, having already reached more than 300,000 homes. They develop a wholesale-only business model, that is, provide their fibre infrastructure to telecommunication operators, who use it to provide communications, TV and Internet services to final customers, business and residential clients.

DSTelecom is a sub-holding of DST Telecomunicações, a joint venture between the DST group, which is chaired by José Teixeira, and Cube Infrastructure Fund II, one of the main European infrastructure funds.

The chairman of the DST group also told the “Negócios” newspaper that DSTelecom has closed 2018 with a turnover of 20 million euros, against 14.6 million for the previous year.

News source Here.