To date, the Netherlands-based Primevest CP and HCOB have worked together on four deals to develop fiber optic networks in Germany, totalling more than €100 million. The relationship is mutually beneficial. HCOB provides customized financing which meets Primevest CP’s requirements. Primevest CP, in turn, selects the assets, brings in general contractors and monitors construction, and then leases the newly-built network to the specially selected internet service provider (ISP) on a long-term agreement.
It is not a new field for HCOB, which began investigating the opportunities offered by fiber optic cable networks in 2014, starting with greenfield sides. ‘The parameters are very different to other asset classes,’ says Inka Klinger, HCOB’s Head of Project Finance. ‘We were a pioneer when we started and it took a while to build up an understanding of the market.’ The market has moved on rapidly since then, as has HCOB’s expertise. ‘One of our tasks is to identify new trends and opportunities in the energy and infrastructure market. At the same time, you have to build up knowledge and experience quickly to achieve a good market position as an expert, and to benefit from early mover advantages,’ she says.
HCOB’s first broadband transaction involved a German fiber optic subsidiary set up by Dutch construction group Volker Wessels. ‘Germans are generally late adopters and the Netherlands was advanced in fiber rollout,’ says Gerrit Hecking, Senior Vice President Project Finance for Infrastructure at the Hamburgbased bank, as he looks back to the early years.
Read full article: Interview with Primevest Captial Partners and Hamburg Commercial Bank about financing fiber.
Interview has been conducted by Robin Pascoe of Dutch News.
