INWIT DIGITAL INFRASTRUCTURE DEVELOPMENT II

Promoter – Financial Intermediary

INFRASTRUTTURE WIRELESS ITALIANE SPA

Location

• Italy

Description

This is the second EIB operation with Infrastrutture Wireless Italiane (INWIT) S.p.A., a leading company in mobile and broadcast communication towers in Italy. The present project aims to support INWIT's expansion and modernisation, specifically focusing on towers and rooftop sites. It will host radio, antennas, and transmission equipment for multiple mobile network operators (MNO) and fixed wireless access operators.

Additionality and Impact

The Project aims to expand and optimize the Promoter's network to meet the growing demand for mobile data and support the operator's coverage need and technological upgrade requirements. Moreover, the tower sharing approach will enable Fixed Wireless Access operators (FWA) to reach less populated areas due to lower investment costs. Accordingly, the Project is fully in line with the "EU Digital Compass 2030", stating that by 2030 all EU households should have Gigabit connectivity. The improved mobile and fixed wireless access (FWA) broadband coverage enabled by the Project in rural and/or underserved areas in Italy will have significant impact on the inhabitants and on the regional development, as broadband connections are required to reap the benefits of digitalisation of economic sectors, such as agriculture, tourism and commerce.

The Project will also address the market failure of sub investments of Very High Capacity Network/5G infrastructure in areas previously deemed as unprofitable.

The Bank's contribution to the Project stems from its support to the diversification of Borrower's financing sources combined with the flexible drawdown terms, longer availability and attractive tenor. The EIB support will have positive signalling effects, thereby facilitating the Project's financing and its full implementation. 

Objectives

The expansion through new sites will enable a wider coverage, particularly for 5G services, including in more disadvantaged areas. The project also comprises new network infrastructure for fibre optic backhauling of the tower sites and the installation of small cells and Distributed Antenna Systems (DAS) to extend the mobile network coverage inside facilities such as hospitals, museums, shopping malls, metro underground and highway tunnels. Such investments will support a better network coverage, higher network capacity and allow for better mobile indoor services particularly in the light of strongly raising mobile data traffic. The project aligns perfectly with the "EU Digital Compass 2030," which states that by 2030 all EU households must have Gigabit connectivity. It also addresses the market failure of under-investment in Very High-Capacity Network (VHCN) infrastructure in areas previously considered unprofitable. The strategy of sharing infrastructure will facilitate the expansion to less populated areas due to reduced investment costs. Furthermore, the project supports Innovation, Digital, and Human Capital - Digital Infrastructure and addresses failures in the financial market caused by the fact that the economic lifetime of digital infrastructure exceeds the tenor of loans, which are typically not available on domestic capital markets or from commercial banks. The project is expected to accelerate investment in VHC networks in designated areas, thereby rating the EIB's as 'Very Good'. Additionally, it is important to consider that a significant share of the project (42%) will be located in cohesion regions. The Project is eligible under / conforms with Article 309 point (a) Projects for developing less-developed regions and point (c) common interest of the Treaty on the functioning of the European Union.

Sector(s)

• Telecom - Information and communication

Proposed EIB finance (Approximate amount)

EUR 350 million

Total cost (Approximate amount)

EUR 788 million

Environmental aspects

Where and if applicable and based on a risk-based approach as defined in the EIB Group environmental and social policy, the requirements of the Environmental Impact Assessment Directive (EIA) 2011/92/EU (as amended by Directive 2014/52/EU), Birds Directive 2009/147/EC and Habitats Directive 92/43/EEC will be checked during appraisal.

Procurement

The promoter has been assessed by the EIB as being a private company not being subject to EU rules on public procurement or concessions. However, if at the Project appraisal, the EIB were to conclude that the Promoter is subject to the EU public procurement legislation then the European Commission will be duly informed, which will require the promoter to apply those rules.

Status

Signed - 27/02/2025