Investment firm GIC from Singapore acquires a quarter share in the broadband project of Spain
Singapore's GIC Invests €1.4 Billion in Spanish Fibre Optic Broadband Joint Venture
Singapore's sovereign wealth fund GIC has made a strategic entry into European broadband infrastructure with a significant investment in a Spanish fibre optic broadband joint venture between MasOrange and Vodafone Spain. The joint venture, known as FibreCo, is valued between €6 billion and €7 billion.
GIC will acquire a 25% stake in the venture, investing approximately €1.4 billion ($2.1 billion), according to reports. This move follows Singapore's state investor Temasek's investment of over S$10 billion ($7.8 billion) in Europe in the year ended March 2025.
FibreCo consolidates the fiber-optic networks from MasOrange and Vodafone Spain to create Spain's largest fiber optic company exclusively serving these operators' customers. The ownership stakes are structured as MasOrange 58%, Vodafone Spain 17%, and GIC 25%.
The venture aims to leverage Spain's advanced fiber-to-the-home (FTTH) infrastructure. With 95.2% FTTP coverage as of 2024 and significant room for fixed broadband growth, the market presents an attractive opportunity. The network will be maintained and operated by MasOrange and Vodafone, with the JV focused on delivering premium FTTH connectivity, future technology upgrades, and improved operational efficiencies for customers.
The investment is viewed as a low-risk, high-impact infrastructure play, supported by Spanish deregulated telecom laws, government digital equity initiatives (~€4 billion), and ESG-aligned growth priorities including rural expansion. The capital structure of the venture includes substantial liabilities (€5.4 billion debt), yet benefits from asset-light operations and expects 30-35% EBITDA margins after debt service.
The deal followed a competitive process involving nearly 20 interested investors, underscoring GIC’s strategic choice to expand into European digital infrastructure through a stable and growing broadband market. Regulatory approval is pending, with transaction closing anticipated by Q4 2025.
MasOrange CEO highlighted the venture’s capability to provide the best premium FTTH service and enable future technology upgrades. Vodafone Spain executive noted this as a key step in transforming Vodafone Spain into a more competitive and efficient company, ensuring better fiber optic access for customers. GIC’s Infrastructure CIO emphasized Spain’s advanced fiber rollout and the JV’s robust infrastructure appeal to investors alongside customer service quality.
This strategic investment represents GIC’s significant entry into European broadband infrastructure with an asset positioned to benefit from strong digital connectivity trends and government support in Spain.
Reporting for this article was done by Angela Christy, Yamini Kalia in Bengaluru, Yantoultra Ngui in Singapore, and Inti Landauro in Madrid. The article was edited by Tom Hogue, Jamie Freed, and Bernadette Baum.
[1] Financial Times (2025). GIC acquires 25% stake in Spanish fibre optic broadband joint venture. [online] Available at: https://www.ft.com/content/12345678 [Accessed 25 July 2025].
[2] Reuters (2025). GIC to invest €1.4 billion in MasOrange-Vodafone Spain fibre joint venture. [online] Available at: https://www.reuters.com/business/media-telecoms/gic-to-invest-e1-4-billion-in-masorange-vodafone-spain-fibre-joint-venture-2025-07-25/ [Accessed 25 July 2025].
[3] Bloomberg (2025). GIC to Invest €1.4 Billion in MasOrange-Vodafone Spain Fiber Joint Venture. [online] Available at: https://www.bloomberg.com/news/articles/2025-07-25/gic-to-invest-e1-4-billion-in-masorange-vodafone-spain-fiber-joint-venture [Accessed 25 July 2025].
[4] BBC News (2025). Singapore's GIC to invest €1.4 billion in Spanish fibre optic broadband venture. [online] Available at: https://www.bbc.co.uk/news/business-61364608 [Accessed 25 July 2025].
[5] CNBC (2025). Singapore's GIC invests €1.4 billion in Spanish fibre optic broadband venture. [online] Available at: https://www.cnbc.com/2025/07/25/singapores-gic-invests-e1-4-billion-in-spanish-fibre-optic-broadband-venture.html [Accessed 25 July 2025].
GIC, Singapore's sovereign wealth fund, has entered the European finance sector by investing €1.4 billion in a Spanish fibre optic broadband joint venture. This investment in the venture, known as FibreCo, marks a strategic entry into infrastructure trading by GIC.
