KfW IPEX-Bank finances fibre optics expansion in Gütersloh/Germany

The city of Gütersloh is continuing to drive the expansion of fibre optics. By the time the project is completed in 2028, Stadtwerke Gütersloh will have invested approximately EUR 94 million.

KfW IPEX-Bank is providing EUR 30 million for the next expansion phases using KfW’s Digital Infrastructure promotional loan with a term of 20 years. This loan can be used by any company that invests in the expansion of fibre optics in Germany. It offers reduced-interest loans with terms of up to 30 years and interest rates fixed for up to 20 years.

The municipal utility Stadtwerke Gütersloh is setting the pace for the fibre optics expansion in the city. Its subsidiary Netzgesellschaft Gütersloh is responsible for the expansion and will gradually roll out and then operate the fibre optic cable network. Marketing and sales will be handled by BITel, a joint subsidiary of the Bielefeld and Gütersloh municipal utilities. BITel will lease the network, invest in the technology and be responsible for future operational management.

“This investment in the cluster-based expansion of the fibre optic network is a milestone for the digitalisation of the Gütersloh region. KfW IPEX-Bank is a reliable partner that is perfectly familiar with financing such forward-looking infrastructure. This expertise will give us the necessary leeway to focus on cluster-based marketing and rapid technical expansion,” explained Ralf Libuda, Managing Director of Stadtwerke Gütersloh GmbH.

Markus Scheer, member of the Management Board of KfW IPEX-Bank: “Financing the expansion of digital infrastructure is one of our key areas of activity. Last year alone, we provided more than EUR 1 billion to expand fibre optics in Germany and Europe. We are very pleased to welcome our new client Stadtwerke Gütersloh and are glad to be a strong banking partner for them. We are continuing to support the expansion of the FTTH (Fibre-to-the-Home) infrastructure with our financings and in doing so making a contribution to digitalisation in Germany.”