Broadband Funding - Loans to Infrastructure Companies

With the loan funding for gigabit expansion in Hesse, the Wirtschafts- und Infrastrukturbank Hessen (WIBank) provides a supplementary financing instrument specifically targeting Hessian broadband infrastructure companies. These companies, organized under private law or in another legal form with 100% public ownership, can use the loan to cover their equity contribution within the framework of the operator model funding. A prerequisite is an already approved partial grant funding according to the Hessian Gigabit Directive (Part II, Sections 6.1.1 or 6.1.3). Additionally, economic viability and secured overall financing must be demonstrated, and the project must not have started yet. Only expenses classified as eligible in the grant funding are supported.

The loan term is up to 240 months, including fixed interest rate periods, with fixed interest rates generally applied. The interest rate is oriented towards the lower end of the current capital market level; a state guarantee commission of 0.25% p.a. on the disbursed loan amount is charged. Through these conditions, the funding instrument aims to establish a reliable, affordable, and high-performance gigabit infrastructure nationwide in previously underserved “grey areas” of Hesse. Applications can be submitted continuously and are made directly through WIBank. This loan creates the financial basis for modern information and communication technologies to be rapidly utilized in rural and structurally weak regions.