Institutional investors Ilmarinen and OP Financial Groups insurance and pension affiliates are matching the Finnish government entity Governias €20 million investment to inject a combined total of €40 million equity funding into the Cinia Groups new submarine infrastructure. Known as the Baltic Sea Cable, the infrastructure will be built between Finland and Germany.
Senior debt capital markets will provide the remaining funds required, enabling this investment to support the new digital hub being created in Helsinki and Finland. This will strengthen the Nordic IT platforms and highlights the potential for further investments in data centres, connectivity and industrial internet companies in the emerging cloud cluster.
Despite the current economic cycle, traffic rates continue to grow and the industry requires new infrastructure to serve as backbone for the digital economy in:
Direct connectivity between Finland and Germany with robust and future-proof technology is essential. The planned submarine system will have landing points in Helsinki, Finland and in the Rostock-Ribnitz area in Germany. The key selection criteria for the landing station location included the existing infrastructure, route diversity and sustainable routing through sea areas. Surveys and preparatory works for the permitting and landing sites have begun and construction works will be conducted during 2015. The system is due to be completed in early 2016.
As a long-term investment with a reasonable cost of capital, this project is ideally suited to a committed and experienced player in the submarine infrastructure sector. We are pleased to announce that Alcatel-Lucent, a leading supplier of submarine cable systems, has been selected as the vendor for building the infrastructure.
The European Commissions notification, SA.36918 (2014/N) Finland Baltic Sea Backbone Cable, confirms that the infrastructure initiative meets the needs of the new digital EU and is promoting the emergence of future digital hubs in Europe. The vendor selection was based on criteria set out in the notification.
The fundamental pillars for the investment are
The Baltic Sea Cable is a key initiative for both the Finnish government and the EU. It will enable connectivity and redundancy to the Nordic region and promote growth for the regions emerging data centres. As the Boston Consulting Group have recently stated in their report, a data centre being built in Luleå, Sweden will create 4,500 full-time jobs over a ten-year period and generate an economic impact within the area of €1 billion. This investment relating to the Baltic Sea Cable will lead the way in promoting the Nordic region and Finland as an attractive location for data centres and IT-related investments.
Cinia Group Ltd.
Executive Vice President
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ABOUT CINIA GROUP
Formerly Corenet, the Cinia Group provides ICT-based services and solutions for companies and corporations in a technology-independent manner. The company works to safeguard the basic services of society by building, connecting and maintaining critical information technology systems. Its services include fixed and wireless communications and network services. They also plan, build and maintain smart telematics systems for companies, from cameras to sensors and remote-controlled hardware. With their monitoring services, the Cinia Group ensures the reliability and security of companies’ critical systems every minute of the day.
ABOUT ALCATEL-LUCENT (EURONEXT PARIS AND NYSE: ALU)
Alcatel-Lucent is the leading IP networking, ultra-broadband access and cloud technology specialist. We are dedicated to making global communications more innovative, sustainable and accessible for people, businesses and governments worldwide. Our mission is to invent and deliver trusted networks to help our customers unleash their value. Every success has its network.
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