German bank NORD/LB has announced a €1.4 billion ($1.65bn) senior debt refinancing package for Lyntia, a neutral wholesale telecommunications infrastructure operator in the Iberian Peninsula.

The seven-year transaction includes a term loan and a revolving credit facility (RCF), and will enable the company to refinance its existing debt while strengthening its capacity to support long-term growth in Spain and Portugal.

The financing will provide Lyntia with the capital to expand its fiber-optic network and meet the growing demand for high-capacity connectivity. The operator has an extensive infrastructure in Iberia spanning more than 57,000km (35,418 miles), complemented by international connectivity to Europe via Marseille, a strategic hub for data traffic.

Lyntia was acquired in January 2023 by a business consortium made up of Axa IM Alts, Swiss Life Asset Managers, and Morrison & Co.

This capital injection comes at a key moment, marked by the acceleration of digital consumption and the need for robust infrastructure to support cloud services, AI, and data-intensive workloads.

The interest of investors and financial institutions in assets such as Lyntia reflects the growing positioning of the Iberian Peninsula, and especially Spain, as one of Europe’s most important digital infrastructure hubs.

Rising demand from hyperscalers, cloud providers, and data center operators is driving the need for high-capacity fiber networks capable of ensuring low latency and high availability in increasingly distributed environments.

Lyntia’s market position is underpinned by a client portfolio comprising large corporations, technology operators, and institutions, with long-term contracts that provide visibility and stability to its revenue.

For NORD/LB, the transaction strengthens its presence in the European B2B fiber segment and expands its relationship with major infrastructure sponsors. The bank thus continues its strategy of supporting projects critical to the development of the European digital ecosystem.

“Lyntia plays an important role in Spain’s digital infrastructure, and this refinancing gives the business the long-term funding it needs to meet sustained demand for high-quality fiber connectivity across Iberia. NORD/LB is committed to supporting critical infrastructure that drives forward Europe’s digital economy,” said Sean Cook, head of infrastructure origination at NORD/LB.

Participation in this refinancing is part of a broader trend of consolidation and expansion in the connectivity sector, where access to long-term financing is essential to sustain the growth of capital-intensive infrastructure.

In an environment where business digitalization and the growth of data traffic show no signs of slowing down, networks like Lyntia’s play a fundamental role as enablers of advanced digital services.

This piece was automatically translated from DCD’s Spanish site and edited by a member of DCD’s editorial staff.