Open Fiber lines up early refinancing for €8 billion in bank loans

The plan on the table

Open Fiber is exploring a major refinancing of roughly €8 billion that would sit among Europe's largest fiber debt deals. The first objective is to push out the timelines on its existing project financing, with a move to capital markets coming later on.

Conversations are preliminary, according to people familiar with the process. The company aims to finalize a refinancing in 2027 so that February 2029 debt maturities are addressed well in advance.

Who owns what, and why it matters

CDP Equity and Macquarie Asset Management share control, with CDP Equity serving as the investment arm of the state lender Cassa Depositi e Prestiti. Open Fiber builds and operates the fiber networks that telecom providers use to connect customers.

It has also been pivotal in the prolonged push to unify Italy's broadband network by combining with infrastructure now owned by KKR backed FiberCop, once part of Telecom Italia SpA. Those talks have run into snags over valuation and credit ratings.

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Funding flexibility and the broader backdrop

The prospective refinancing would give Open Fiber more latitude to pay for additional network buildouts, including in cities where coverage is still unfinished. One person familiar said the company is also seeking extra borrowing headroom of around a few hundred million euros.

All of this is happening as borrowing for digital infrastructure rises with technology companies expanding artificial intelligence. At the same time, challenger fiber operators across Europe are under pressure as tougher competition and stricter lender scrutiny make financing growth harder. Even established players such as Altice International and Virgin Media O2 are contending with large debt loads built during cheaper money years that are now pricier to refinance.

What investors should watch next

Open Fiber may look to tap bond markets in 2028 or 2029, as one person familiar said, with the view that by then improved cash flow would underpin a suitable credit rating. The bottom line: watch how refinancing timelines and funding costs evolve for debt heavy telecom and infrastructure names in Europe.

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