OTE signs loan deal with EBRD
Deutsche Telekom-owned OTE signed an agreement on Thursday to raise 150 million euros via a loan agreement with the European Bank for Reconstruction and Development – the first in the country in the digital investments pillar – with the use of funds from the National Recovery and Resilience Facility “Greece 2.0,” financed by NextGenerationEU.
These funds will contribute to the Fiber to the Home (FTTH) network rollout by OTE in the Greek region under its investment plan set to exceed €3 billion by 2027.
The agreement was signed at ΟΤΕ Headquarters by Dirk Werner, director and head of Telecommunications, Media and Technology at the EBRD, and the chairman and CEO of the OTE Group, Michael Tsamaz, in the presence of Finance Minister Christos Staikouras, his alternate Thodoros Skylakakis and the governor of the Greek Recovery and Resilience Agency, Nikos Mantzoufas.
The Greek Recovery and Resilience Facility funds will provide OTE with additional liquidity for the part-implementation of its FTTH rollout plan: It will specifically finance the rollout to approximately 371,000 households and businesses in 12 regions (Achaia, Halkidiki, Corfu, Cyclades, Dodecanese, Evros, Larissa, Lefkada, Rethymno, Rodopi, Trikala and Xanthi) by 2027, substantially contributing to the digital development of those provinces. The fiber networks are more energy efficient, so the expansion of the FTTH network will contribute significantly to the reduction of greenhouse gas emissions and the green transition of the economy.
Staikouras stated that “the loan agreement between OTE and the EBRD confirms the crucial role of the National Recovery and Resilience Plan ‘Greece 2.0’ in implementing investments for digital transition which will have concrete results in improving citizens’ everyday life and which will significantly contribute to promoting regional growth and innovation.
“Through this investment, which will give access to the FTTH fiber-optic network in 12 regions in the coming years, digital infrastructure is reinforced and the country’s competitiveness and investment attractiveness are strengthened. The government will continue working methodically and efficiently to utilize NGEU funds in the best possible way and achieve high, sustainable and inclusive growth.”
