abrdn invests in spanish fibre network in andalusia

abrdn has today announced that its Infrastructure team has signed an agreement to make a major equity investment in a partnership with Digi Spain, a subsidiary of RCS & RDS, a leading Romanian company with over 30 years’ experience in the telecommunications sector.

As part of its expansion strategy in Spain, Digi Spain is in the process of deploying a Fibre-to-the-Home (“FTTH”) network with the aim of covering up to 2,500,000 residential units (the “Network”). While the deployment of a part of the Network covering approximately 1,000,000 residential units is complete, the deployment of the rest of the Network covering up to 1,500,000 residential units will be carried out gradually, over an estimated period of three (3) years.

The deployment of the Network implies an investment amount of up to EUR 300,000,000, which will be committed in substantially equal parts by Digi Spain and abrdn, potentially also involving bank financing. The transaction features attractive infrastructure investment characteristics, combining long-term cash flows and near-term yield with growth.

Digi Spain was established in 2008 and offers mobile telephony services, as well as fixed–line broadband and telephony services in Spain. Digi Spain has been operating as a nation-wide full-fibre operator in Spain since 2018, and has built a fibre footprint across most urban areas in Spain. Digi Spain has been appraised by Ookla as the Fastest Fixed ISP for the years 2021 and 2022and employs over 6,000 employees in Spain.

This marks the second investment by abrdn’s third Core Infrastructure Fund, ASCI III, which is currently fundraising and investing in the pan-European infrastructure mid-market and is categorised Article 8 under SFDR.

Dominic Helmsley, Head of abrdn Core Infrastructure, said: “We are thrilled to announce the second transaction from our third infrastructure fund, ASCI III’s, and its first investment in Continental Europe. This transaction demonstrates our continued support of the digital infrastructure sector and we are privileged to partner with RCS & RDS and Digi Spain. We look forward to working together to support their strategic objectives.”

Soti Calochristos, Investment Director, abrdn Core Infrastructure, said: “We are deeply impressed by Digi Spain’s commitment to develop high quality infrastructure, deliver outstanding customer service and democratise access to high-speed internet through their competitive Fibra Smart offering. We are very excited to develop this relationship going forward and support Digi Spain’s growth in Andalusia.”

Marius Varzaru, Chief Executive Officer at Digi Spain, said: “Pursuant to the success and continuous growth achieved so far, the transaction with abrdn is a natural step towards the further development of our business in Spain. We are looking forward to implementing our expansion in Andalusia together with abrdn and trust that our experience and excellent relationship will ensure an efficient and stable growth in the region.”

Ends

Media enquiries

Debbie Cowe,
Media Relations Manager, abrdn
debbie.cowe@abrdn.com
+44 (0) 7711 774017

Notes to editors

About abrdn

abrdn’s Core Infrastructure team has successfully raised and deployed two infrastructure funds totalling over €2.3 billion and is currently raising its third infrastructure fund, abrdn Core Infrastructure III.

• abrdn is a global investment company that helps clients and customers plan, save and invest for the future. Our purpose is to enable our clients to be better investors.
• abrdn manages and administers £500bn of assets for clients (as at 31 December 2022).
• Our strategy is to deliver client-led growth. We are structured around three businesses – Investments, Adviser and Personal – focused on their changing needs.
• The capabilities in our Investments business are built on the strength of our insight – generated from wide-ranging research, worldwide investment expertise and local market knowledge.
• Our teams collaborate across regions, asset classes and specialisms, connecting diverse perspectives and working with clients to identify investment opportunities that suit their needs.
• As at 31 December 2022, our Investments business manages £376bn on behalf of clients - including insurance companies, sovereign wealth funds, independent wealth managers, pension funds, platforms, banks and family offices.

 

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