EUR 80 million refinancing for Bucharest underground telecommunications network operator Netcity

Meridiam and its partners have successfully closed the EUR 80 million refinancing of Netcity Telecom, the operator of Bucharest's underground telecommunications network, the company announced.

According to the company, the refinancing operation, led end-to-end by Meridiam, represents the first project finance bond issuance in the country, and establishes a new market record with tenors of up to 26.5 years, surpassing Meridiam's previous 18-year market benchmark achieved in 2022.

The operation also provides flexibility to support a future expansion of the Netcity Telecom network and new digital infrastructure developments across Bucharest, Meridiam said.

Netcity Telecom has been operating the underground telecommunications network in Bucharest since 2008, in a 49-year concession agreement with the Bucharest City Hall. 

It has so far developed more than 3,000 kilometers of underground telecommunications infrastructure across Bucharest, while removing overhead cables. Today, the network serves around 70,000 buildings, representing approximately half of all buildings in the city, and provides internet access to nearly 600,000 homes and office premises.

Netcity Telecom has worked with several districts of Bucharest in designing and deploying dedicated fiber networks for municipal CCTV projects. The company has also contributed to the implementation of the pilot phase of the new Bucharest Traffic Management System, and is currently involved in Smart School initiatives.

Meridiam has an 80% stake in Netcity Telecom, alongside E-INFRA Group (20%), a Romanian group active in the energy, construction, and telecommunications sectors.

Meridiam, an independent investment Benefit Corporation and asset manager, was founded in 2005 by Thierry Déau. The firm specializes in the development, financing, and long-term management of public infrastructure across three sectors: sustainable mobility, critical public services, and innovative low-carbon solutions. With offices in Addis Ababa, Amman, Dakar, Istanbul, Johannesburg, Libreville, Luxembourg, Paris, Vienna, and Washington, Meridiam manages USD24 billion and more than 130 projects to date. 

(Photo: Jakub Krechowicz | Dreamstime.com)

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