Monday, May 27, 2024

Vogon Today

Selected News from the Galaxy

StartMag

News on Banco Bpm, Confindustria, Dagospia, Open Fiber, Pope Francis, Pegaso and more

2 months ago babelfish

News on Banco Bpm, Confindustria, Dagospia, Open Fiber, Pope Francis, Pegaso and more

What is said and what is not said about Banco Bpm, Confindustria, Dagospia, Multiversity, Open Fiber, Pope Francis, Pegaso and more. Press review pills

THE POPE PAPAL PAPAL

DEMOCRATIC NUMBERS

THE BANCO BPM PARADOX

THE ATTAPIRATES IN CONFINDUSTRIA

DAMAGED OPEN FIBER

THE HOT NUMBERS OF FROZEN FOOD

POSTCARDS FROM BARI

NEWS ON MULTIVERSITY

POSTCARD FROM THE UK

AMERICAN POSTCARDS

QUISQUILIE & PINZILLACCHERE

+++

EXTRACT OF AN ARTICLE FROM REPUBBLICA ON OPEN FIBER:

The tug of war that has been going on for over a year between the banks and Open Fiber for the financing of the fiber network is approaching a solution. The final details on the 7.2 billion project financing disbursed at the end of 2019 to complete the fiber infrastructure will be defined by April, and another 2 billion, between debt and capital, should be disbursed by June to complete the work. As part of the initial agreement, the partners namely Cdp (60% of Open Fiber ) and Macquarie (40%) had committed to financing the operation, with a proportion of capital (30%) and debt (70%) banking . But something has gone wrong in the last 5 years: Open Fiber took longer than expected to complete the work, excavation costs have increased also due to the high cost of raw materials and inflation, debt rates have exploded, making financing of the works is more expensive for the banks, the white areas have been difficult and new technologies and solutions have appeared such as the rental of Tim's poles, the Eolo Fwa and the Starlink satellites (on which a solution has not yet been found agreement), finally the network remained empty, because the filling rate remains low: out of 15 million homes wired in fibre, only 3 million use and pay for the service. It took several adjustments to the various industrial plans and three management changes (Tommaso Pompei 2016-2018, Elisabetta Ripa 2018-2021, Mario Rossetti 2021 September 2023), the last appointment being that of CEO Giuseppe Gola alongside the financial director Andrea Crenna, who are assisted in the operation by Lazard, to find a solution that satisfies shareholders and creditors. The general agreement provides that by April the banks, which are assisted by Rothschild, will disburse the last tranche of the project financing that they had blocked because Open Fiber had not respected the covenants, injecting 760 million into the company's coffers, half of the which will be guaranteed by Sace. For its part, CDP and Macquarie will proceed to finalize the 375 million capital increase approved in March 2023, which however has not yet been fully finalized. Once this first phase on the old debt has been closed, a new line will have to be renegotiated to finish the works. The amount of this new financing will also depend on the amount that Infratel will recognize to Open Fiber , as a rebalancing of the economic-financial plan for the white areas, as compensation for the greater costs faced. There is talk of around 800 million, which Infratel should define and pay into Open Fiber 's coffers by October. Of this amount, approximately three-quarters will be paid in cash and a quarter will be returned in the form of concession extensions. At that point, around 2 billion would be needed to complete the works, to be financed partly by debt and partly by a new capital injection from the partners. The banks would like to divide the costs and expenses 50-50% (up to now it has been 70% debt and 30% equity). CDP and Macquarie would prefer to limit the contribution to 40%, leaving 60% to creditors.

This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/le-news-su-banco-bpm-confindustria-dagospia-open-fiber-papa-francesco-pegaso-e-non-solo/ on Mon, 08 Apr 2024 13:33:22 +0000.