UPDATE 1: Bank Lenders to Unsere Gruene Glasfaser Tap Linklaters as Debt Talks Move Ahead

Tue Mar 17, 2026 02:25 PM ET: Bank lenders to Unsere Gruene Glasfaser, or UGG, have appointed Linklaters as legal counsel to assist in talks with the German fiber optic provider to address its funding needs and approaching maturities on its debt stack, sources said.

UGG’s lenders include German bank KfW, French banks BNP Paribas and Société Générale, Japanese institution SMBC and Italy’s UniCredit, as reported.

The group’s debt consists primarily of a €1.65 billion syndicated financing provided in 2021 by a group of nine German and international banks including UniCredit. The financing came in the form of a nonrecourse preferred loan with a seven-year maturity.

UGG previously lined up Clifford Chance and DC Advisory’s infrastructure team in February ahead of debt talks.

Though negotiations will deal with funding needs and the company’s over-levered capstack in the near term, sources suggested that the company would likely look for an M&A solution in the longer term, as the German altnet sector seeks to consolidate amid market headwinds.

Linklaters declined to comment, while UGG did not respond to Octus’ request for comment.

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Original Story 11:08 a.m. UTC on Feb. 6, 2026

New Coverage: German Altnet Provider Unsere Gruene Glasfaser Lines Up DC Advisory, Clifford Chance Ahead of Debt Talks

Relevant Documents:
UGG’s 2023 Annual Report (in German)
UniCredit Press Release for UGG’s 2021 Financing
Telefonica Website for UGG

German fiber optic provider Unsere Gruene Glasfaser, or UGG, has lined up Clifford Chance and DC Advisory’s infrastructure team ahead of talks to address its funding needs and approaching maturities on its overlevered debt stack, sources say.

The group’s debt consists primarily of a €1.65 billion syndicated financing provided by a group of nine German and international banks including UniCredit in 2021. The financing came in the form of a non-recourse preferred loan with a seven-year maturity.

UGG’s lenders include German bank KfW, French banks BNP Paribas and Société Générale, Japanese institution SMBC and Italy’s Unicredit, according to sources.

The financing came on top of the €500 million in equity previously pledged by part owner Spanish telco Telefonica, and a further €1 billion pledged by co-owner insurer and asset manager Allianz, across various instruments, according to Telefonica’s website. Allianz and Telefonica set up UGG as a joint venture in 2020, with the aim of UGG investing up to €5 billion from different sources of funding to complete its fiber rollout.

At the time of the financing, the group aimed to reach 2.2 million homes across rural areas of southern Germany through 2027. However, according to UGG’s 2023 annual report, the company signed memorandums of understanding to pass 1.2 million homes, but only 341,310 of those were under construction by the end of that year.

The group’s website currently states that more than 1 million customers have a fiber connection from UGG or are getting one.

UGG also faces a further €895 million in debts from subsidiary Infrafiber Germany, or IFG, after it acquired the former competitor in July 2024.

M&G’s infrastructure equity investment arm Infracapital, which previously owned IFG, raised the €895 million financing in 2022. The debt package comprised a seven-year infrastructure style debt facility with €500 million committed upfront, including a €40 million RCF and a €395 million uncommitted accordion. The deal was underwritten by NatWest, ABN AMRO and NORD/LB with SEB acting as a cornerstone lender and DC Advisory and Clifford Chance acting as advisors on the deal.

The funding was meant to support IFG’s network expansion target of 510,000 homes by 2026 from about 150,000 homes as of June 2022. However, IFG also faced operational and cashburn challenges, resulting in a need for fresh capital in early 2024. UGG acquired the company following its failed attempt to raise new funding.

DC Advisory led the sale at the time, with Herter & Co., the German arm of Teneo, advising the IFG and A&M providing operational assistance. Lenders took advice from Linklaters and FTI, as reported.

Sector Challenges

The fiber broadband sector is under immense pressure to consolidate, but many companies, specially challenger companies or altnets, are resisting buyouts at current valuations, creating a stalemate. Some sources told Octus they expect an uptick in enforcement as lenders, usually high street banks, have lost appetite for the sector.

In the U.K., G Network collapsed into administration last month after its takeover by distressed debt specialist FitzWalter. Lenders to Gigaclear are also set to take over the keys from sponsors following an unsuccessful attempt to sell the U.K.-based altnet, which failed to secure an acceptable offer.

Much like their U.K. peers, a number of German fiber providers have also faced headwinds in recent years due to the higher interest rates, the capital-intensive nature of laying fiber cables, and higher rurality in the country, resulting in longer payback periods and increased stress on liquidity.

Fiber giant Deutsche Glasfaser and mid-size player TeleColumbus entered discussions with stakeholders over a need for new funding late last year, while Northern Fiber also entered negotiations with lenders to rightsize its capital structure.

Clifford Chance, Allianz and SMBC declined to comment, while KfW, Société Générale, BNP Paribas, UniCredit, DC Advisory, UGG and Telefonica did not respond to requests for comment.