The loan, supported by a 60% SACE guarantee, is expected to help the telecommunications firm in the development of the advanced network infrastructure in the country
EIB provides €360m in loan to TIM for 5G coverage expansion. (Credit: European Investment Bank)
Italian telecommunications firm Gruppo TIM has secured €360m loan from the European Investment Bank (EIB) for the expansion of 5G coverage in Italy.
In line with this, an agreement was finalised by EIB Vice President Gelsomina Vigliotti and TIM CEO Pietro Labriola along with SACE Chief Business Officer Bernardo Attolico.
The loan, supported by a 60% SACE guarantee, is expected to help the telecommunications firm in the development of the advanced network infrastructure in the country.
With the funding, TIM expects to leverage 700MHz bands to extend the 5G coverage across the country by the end of 2025.
According to EIB, the funding supports the goals of the 2030 Digital Decade.
It is a European Union (EU) programme that outlines digital objectives for the next ten years, including the creation of safe and sustainable digital infrastructure, the digital transformation of businesses, and the digitalisation of public services.
Besides, the funding will enable the telecommunications firm to access a debt instrument on better conditions than those offered on the bond banking market, said EIB.
The EIB has offered more than €1bn in funding for TIM projects between 2019 and 2023.
EIB said that these loans fall under its main areas of activity, including development and support for the telecommunications network infrastructure, bridging the digital divide, addressing targets of the Digital Agenda for Europe, and assisting the EU’s most disadvantaged regions.
In December 2022, TIM and Google Cloud announced the launch of the first 5G edge cloud platform that will enable smart mobility in Italy.
The new solution which was activated in the Modena automotive smart area (MASA) allowed the development of new applications dedicated to connected cars, smart mobility and other digital services in multiple areas.