The European Commission and the European Investment Bank (EIB) have announced their plans to launch a fund for broadband infrastructure – the Connecting Europe Broadband Fund, which will be managed by Cube Infrastructure Managers.

This fund, which will lead to an investment platform combining private and public commitments, is announced together with three National Promotional Banks and Institutions (NPBIs) that aim to participate in the initiative as anchor investors: KfW Bankengruppe from Germany, Cassa Depositi e Prestiti from Italy and Caisse des dépôts et consignations from France.

The Connecting Europe Broadband Fund will invest in broadband network infrastructure across underserved areas of Europe.

The Connecting Europe Broadband Fund should raise at least €500 million (US$531 million) at first closing through commitments from private and public investors, including the EIB and the European Commission. The European Commission will invest €100 million (US$106 million) into the Fund from the Connecting Europe Facility.

High level representatives of the three NPBIs underlined the importance of this initiative as one of the first investment platforms under the European Fund for Strategic Investment (EFSI) and the key role of this new financial instrument for the broadband expansion in their respective markets. 

Günther H. Oettinger, Commissioner for Digital Economy and Society, said:

"I am grateful to our financial partners for the establishment of this broadband Fund. It is an important development for smart and efficient funding of broadband projects, especially in underserved areas, in line with the spirit and the letter of the Investment Plan. It is a great step towards a European Gigabit Society for all."

EIB President Werner Hoyer, said:

“High-speed internet is fundamental to the success and development of businesses. Until today, smaller-scale broadband projects did not have easy access to funding and EU financial instruments did not exist. Consequently, projects in less populated or rural areas, where purely private-led initiatives may not see the economic benefits of deploying broadband networks, were difficult to implement. The new fund will help bridge this market gap, and I am glad that the EU Bank is part of this joint initiative.”