The loan will be issued to Germany telco Telefonica Deutschland to roll out an energy-efficient 5G network and to consolidate its LTE network.
Telefonica Deutschland’s 8-year term loan is linked to the company’s ambitious energy savings target whilst sending large amounts of data, a goal which the 5G network will help the telco achieve.
The loan will also help Telefonica Deutschland to increase its network capacity in cities where it intends to remain as a market leader. In other cities so-called “white spots” are set to be eliminated in order to gain new customers.
Ambroise Fayolle, EIB Vice-President, in charge of innovation and operations in Germany, said: “5G, the next-generation mobile standard, is fast approaching.
“It will produce higher speeds and improve mass connectivity, and both citizens and the economy will also benefit from superfast, reliable networks. It will enormously improve existing wireless applications and open up completely new areas of business. That is the basis for innovation and growth in Europe, an objective that along with climate action is one of the EU bank’s top priorities.”
Telefonica Deutschland manages more than 45 million connections in Germany.