The Project Company/Borrower for the billion-euro project is Société de Développement pour l’Accès a l’Infrastructure Fibre (SDAIF), which was formed specially for this purpose. SDAIF is owned by two French companies – telecommunications services provider, Bouygues Telecom (49 percent) and financial investor, Vauban Infrastructure Partners (51 percent). A number of international banks and institutional investors in addition to the Talanx Group are also providing debt financing. The tranche of debt reserved for institutional investors was significantly oversubscribed due to the attractive project and financing structure.
In this transaction, the role of the Talanx Group is purely to provide debt, through the acquisition of more than EUR 60 million worth of project bonds with an attractive risk/return ratio and a term of 20 years. “Fibre optics is a growing sector”, commented Peter Brodehser, Head of Infrastructure Investments at Talanx. “And in this case the opportunities and risks can be readily calculated.” This explains why the Talanx Group is investing in another FTTH project for the second time this year. Back in April, it contributed more than EUR 200 million to the debt financing for a fibre optics project run by French company IFT.
“This new investment systematically continues the Talanx Group’s strategy of further expanding the proportion of infrastructure investments in its investment portfolio, and of enhancing diversification”, Brodehser added. Infrastructure investments by the Group currently total more than EUR 3 billion. The focus is on renewable energy projects such as wind farms and solar power plants. Other financial investments include power grids and social infrastructure such as hospitals.
It is not only infrastructure investments’ long durations and comparatively attractive returns in a low-interest environment that make them interesting for the Talanx Group. They also contribute to the sustainability targets that the Group has set itself. In total, by the end of 2019, the Talanx Group had invested approximately EUR 2.5 billion in renewable energy and other infrastructure projects. The Group undergoes ESG screening by an external service provider every six months. The latter monitors all tradable fixed-income securities and equities included in Talanx’s assets under management in line with international ESG (environmental, social and governance) criteria.
This news release contains forward-looking statements which are based on certain assumptions, expectations and opinions of the Talanx AG management. These statements are, therefore, subject to certain known or unknown risks and uncertainties. A variety of factors, many of which are beyond Talanx AG’s control, affect Talanx AG’s business activities, business strategy, results, performance and achievements. Should one or more of these factors or risks or uncertainties materialise, actual results, performance or achievements of Talanx AG may vary materially from those expressed or implied in the relevant forward-looking statement. Talanx AG does not guarantee that the assumptions underlying such forward-looking statements are free from errors nor does Talanx AG accept any responsibility for the actual occurrence of the forecasted developments. Talanx AG neither intends, nor assumes any obligation, to update or revise these forward-looking statements in light of developments which differ from those anticipated.