Private capital firm EQT and Canadian pension fund Omers have reportedly increased their investment in German broadband provider Deutsche Glasfaser to nearly €5 billion ($5.88bn).

The Financial Times reports that EQT and Omers have increased investment in an effort to avoid lenders seizing control of the heavily indebted business. 

Founded in 2011, Deutsche Glasfaser was attempting to build out its fiber network to 6 million households in Germany by 2030, though this target has been scaled back to 3.2 million by 2032.

EQT and Omers acquired the business in 2020 for €2.8bn ($3.29bn) from private equity group KKR in 2020. EQT owns a majority stake of 51 percent, with Omers holding the rest.

The FT notes that the two companies have already invested €4bn ($4.7bn) into Glasfaser, but will need to put up about €850m ($1bn) for preferred equity with the lenders to inject €400m ($470m) of new super-senior debt, according to sources.

The two stakeholders have tried and failed to find another backer in Glasfaser, which has gross debt of more than €7bn ($8.24bn).

A financing agreement could be announced later this week, adds the FT report.

Glasfaser has so far reached 2.6 million homes with its fiber network.