Kommunalkredit plans €250m debt fund close ahead of double fund launch

The Austrian group is also teaming up with Meridiam to try to win a €300m local broadband tender against Macquarie and Allianz.

Austrian infrastructure bank Kommunalkredit is planning to hold a final close on its maiden debt fund on about €250 million at the end of H1 2019, Infrastructure Investor understands.

The close of Fidelio KA Infrastructure Debt Fund Europe 1, which was launched last year and held a €190 million first close in September, will be followed by the launch of two new infrastructure debt funds later this year. Plans for the vehicles are thought to be at the early stages.

While Kommunalkredit does not disclose the specific projects invested in by the fund, the vehicle has access to the bank’s financing pipeline, which has backed deals in German fibre broadband expansion and in the Nikola Tesla Airport concession in Serbia. The fund provides senior debt and targets returns of 3 percent. It was initially capitalised by Austrian and German insurance companies.

Kommunalkredit is also seeking to fund a rural fibre broadband project in the state of Lower Austria and has teamed up with Paris-based Meridiam for the €300 million tender to connect 100,000 homes, a source told Infrastructure Investor. The pair are on a final shortlist, which also comprises separate bids from Macquarie and Allianz Capital Partners, according to the source. The winning bidder will take a 74.9 percent stake in NoGIG, Lower Austria’s fibre optic operator, with the state holding the remainder of the company.

Kommunalkredit is predominantly owned by Interritus and Trinity Investments Designated Activity Company. The bank was nationalised in 2008 in the wake of the financial crisis and privatised again in 2015.