The deal follows a binding agreement signed back in January between MasOrange and Vodafone Spain to establish a national fibre-to-the-home (FTTH) network, which is expected to become Europe’s largest independent FibreCo.
The financing comprises up to €6.25 billion raised at the MasOrange level and €4.7 billion in infrastructure funding at the FibreCo level.
According to MasOrange, the latter has been structured to achieve an investment-grade rating, highlighting the strong credit profile of the new fibre entity and confidence in the Spanish broadband market.
Ludovic Pech, CFO of MasOrange, said the dual perimeter financing deal reflects the “confidence placed in the Company by our financial partners” and would allow MasOrange to reduce its weighted average cost of debt while extending maturities.
MasOrange said all net proceeds from the FibreCo transaction will be directed toward debt repayment, helping the company meet its tightened leverage target of 2.75x.
The FibreCo will be jointly owned by MasOrange (50%) and Zegona, the new parent company of Vodafone Spain (10%). The remaining 40% stake is expected to be sold to a financial investor, with Zegona indicating “strong” interest from potential backers.
The venture will span 12.2 million premises and serve more than 4.5 million customers across both operators, creating a wholesale open-access network designed to accelerate FTTH deployment in Spain.
Zegona CEO Eamonn O’Hare previously described the partnership with MasOrange as a strategic shift for Vodafone Spain, enabling access to a “future-proof all-fibre national network with attractive economic terms” and delivering substantial cost savings.
The FibreCo transaction is scheduled to close by mid-2025, pending regulatory approvals and the onboarding of a third-party investor.
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