KfW IPEX-Bank finances the purchase of a natural gas pipe network in Germany

KfW IPEX-Bank is part of a syndicate of banks financing the purchase of Erdgasversorgungsgesellschaft Thüringen-Sachsen mbH (EVG) and its natural gas pipe network. The network consists of a total of 1168 kilometres of pipes in the German federal states of Thuringia, Saxony, Saxony-Anhalt and Hesse. The purchaser is the European infrastructure fund 'European Diversified Infrastructure Fund' (EDIF) run by First State Investments, the asset manager of the Commonwealth Bank of Australia. The sellers are the energy providers E.ON SE and Verbundnetz Gas Aktiengesellschaft (VNG) in Leipzig.

KfW IPEX-Bank has joined SEB AG, CIBC, Crédit Agricole CIB, ING Bank and Scotiabank (arranger) to form the financing syndicate. The financing totals EUR 270 million and has a term of five years.