Italy: TIM receives €360 million in EIB financing with SACE guarantee for 5G network development
Christian Fernsby ▼ | May 6, 2023
The European Investment Bank (EIB) partly assisted by a SACE guarantee will support TIM in the development of the next-generation network infrastructure in Italy with a €360 million loan, which will be used to finance the expansion of 5G coverage.Article continues below
The agreement was finalised by EIB Vice-President Gelsomina Vigliotti and TIM CEO Pietro Labriola, together with SACE Chief Business Officer Bernardo Attolico.
The EIB financing, 60% guaranteed by SACE will enable TIM to expand 5G coverage across Italy by the end of 2025 using 700 MHz bands.
The operation supports the objectives of the 2030 Digital Decade, the EU programme defining digital ambitions for the next ten years, including developing secure and sustainable digital infrastructure, the digital transformation of businesses, and the digitalisation of public services.
In addition, the financing will allow the TIM Group to have access to a debt instrument on more favourable terms than those offered on the bond banking market.
The EIB has provided over €1 billion in financing for TIM projects between 2019 and 2023.
These loans come under the EIB’s main areas of activity, namely developing and supporting the telecommunications network infrastructure, bridging the digital divide, meeting the targets of the Digital Agenda for Europe, and helping the EU’s most disadvantaged regions.
In 2022, SACE joined a pool of financial institutions under the ‘Garanzia Italia’ framework to guarantee a €2 billion loan granted to TIM to support investment in Italy planned under the Group’s business plan. ■ What to read next
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