The communications infrastructure company Unlimited (IBC) reports that the insurance company Migdal has expanded the credit line it provides to IBC with another NIS 500 million, which will be used to accelerate the deployment of the company’s fiber optic network in Israel.
This is the second time that Migdal has granted credit to IBC, after in 2020 it granted it a credit facility of NIS 350 million, of which the company used about NIS 200 million, so that the total amount that Migdal provides for the fiber venture will be NIS 700 million. The current loan is until 2032. The interest rate on the new loan will be 2.5% on average.
One of IBC’s challenges is to “fill the network,” that is, beyond expanding the deployment that should reach 1.7 million households within four years (an increase of 250,000 each year to about 700,000 households today). The company wants to add as many subscribers to the network as possible, to help it utilize it more effectively and bring a faster return on investment.
IBC currently provides Internet infrastructure services to communications companies including Cellcom, Hot, Expon, Rimon Internet, Telzer and more. Last week, it was reported that an agreement had been signed with Partner for the use of a company’s fiber network, which could greatly contribute to the venture.
The fiber infrastructure currently reaches about 730,000 households in 60 localities throughout the country, from Kiryat Shmona in the north to Eilat in the south. The company is owned by Cellcom, Hot, Israel Infrastructure Fund (IIF) and the Israel Electric Company.
Last week, Yossi Hever was appointed acting CEO of the company, replacing Amir Levy, who is retiring. In addition, Nati Cohen, former CEO of the Ministry of Communications, was appointed chairman of the board.