KfW provides financing as cornerstone investor in CEBF for broadband expansion in underserved regions of Europe

• EUR 420 million in start-up capital for fast internet in rural areas
• First investors include the European Commission, European Investment Bank, national promotional banks and private investors
• At least EUR 1 billion in additional investments expected as a result

Frankfurt am Main / Brussels. KfW is providing funds of EUR 50 million for the new Connecting Europe Broadband Fund (CEBF). The fund is intended to support investments in underserved regions of Europe. The fund will be the first investment platform to promote broadband expansion within the scope of the European Fund for Strategic Investments (EFSI). Further initial investors include the European Commission with EUR 100 million from the Connecting Europe Facility (CEF), the European Investment Bank with EUR 140 million (including EUR 100 million under the European Fund for Strategic Investments (EFSI), the main pillar of the Investment Plan for Europe, French promotional bank Caisse des dépôts et consignations (CDC) and Italian promotional bank Cassa Depositi e Prestiti with EUR 50 million each, as well as private investors.

The capital from the new fund is expected to finance seven to twelve projects in underserved European regions with amounts ranging from EUR 1 to 30 million each year until 2023. Germany has considerable ground to make up in this area: according to a survey by the World Economic Forum, Germany is ranked 19th among 35 member countries with regard to average bandwidth. And particularly in rural areas, high bandwidth is rare: in 2016 only about 30% of households in these areas had speeds of more than 50 Mbit/s; access to fibre optic connections with higher bandwidths is only close to 2%. Overall, it is expected that the fund will trigger additional investments of at least EUR 1 billion for broadband expansion in underserved regions in Europe. The fund and the financed projects are managed by Cube Infrastructure Managers S.A. based in Luxembourg.

The Member of the Executive Board of KfW responsible for promotional business in Germany, Dr Ingrid Hengster, said: "Broadband access is becoming a location factor for the future and key to the competitiveness of entire regions. We have to get things moving in Germany if we want to make it to the top. Rural areas in particular often still have poor access to higher bandwidths. This has to change. Our involvement in the European broadband fund is helping to ensure that these regions will also be able to exploit their potential as business locations in the future."

press release: European Commission

press release: EIB