German insurer Allianz has signed a €5 billion ($5.8 billion) fiber deal with Telefonica, one of the largest telecommunications companies in the world, reports Spanish newspaper Expansion.
Under the 50-50 joint venture, Allianz’s private equity arm will provide financing for a fiber-to-the-home network targeting underserved areas of Germany.
Last week, sources with knowledge of the matter told Reuters that Telefonica was in advanced talks with an anonymous infrastructure investor as well as banks. Banks will provide two-thirds of the capital and Allianz will provide the remaining equity.
Telefonica operates in 14 countries and had revenues totaling €48.4 billion ($56.9 billion) as of January, according to the company’s website.
