Assured Guaranty Issues €175 Million Debt Service Reserve Guarantee to XpFibre Groupe
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debt service reservefinancial
A debt service reserve is a pool of cash or liquid assets set aside to guarantee upcoming interest and principal payments on a loan or bond if regular revenues fall short. Think of it as an emergency fund a borrower keeps specifically for debt bills; for investors, it lowers the risk of missed payments, can improve credit terms, and provides extra assurance that scheduled returns will be paid even during temporary cash-flow problems.
financial guaranteefinancial
A financial guarantee is a promise from a third party—often a bank or insurer—to pay a debt or meet an obligation if the original borrower does not, similar to a cosigner stepping in to cover a loan. Investors pay attention because guarantees reduce the chance of loss, can improve a borrower’s credit standing and borrowing costs, and act like insurance that makes a company’s cash flows and risk profile more predictable.
senior secured fixed rate notesfinancial
Debt securities that act like a loan a company takes from investors, backed by specific collateral and given top priority for repayment if the company defaults. They pay a fixed interest rate for a set term, so investors receive predictable income but face the usual risks from changes in market interest rates and the issuer's ability to repay. Because they are both secured and senior, they are generally less risky than unsecured or junior debt, which matters when deciding how to balance yield versus safety.
fibre-to-the-hometechnical
Fibre-to-the-home (FTTH) is a broadband network setup that runs optical fiber cables all the way into individual residences, replacing slower copper lines so households get much faster and more reliable internet. For investors, FTTH matters because it involves large upfront construction costs but creates durable, high-demand services with lower maintenance and the potential for steady, long-term revenue and competitive advantage—similar to installing a high-capacity highway instead of a single-lane road.
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credit enhancement productsfinancial
Credit enhancement products are tools that make a loan or bond look safer to lenders and investors by reducing the chance they’ll lose money if a borrower can’t pay. Think of them as a co-signer, insurance policy, or extra cushion that improves a debt’s credit rating and typically lowers the interest cost, so investors trade a bit of higher return for less risk and greater predictability of getting paid back.
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Asset management is the professional oversight and planning of investments — such as stocks, bonds, real estate, and cash — to meet a client’s financial goals while controlling risk. It matters to investors because skilled managers build and adjust a diversified portfolio, like a gardener tending different plants to maximize growth and survive bad weather, which can improve returns, reduce losses, and save individual investors time and expertise.
PARIS--(BUSINESS WIRE)--
Assured Guaranty (Europe) SA (AGE)*, an indirect subsidiary of Assured Guaranty Ltd. (together with its subsidiaries, Assured Guaranty), announced that it has issued a five-year debt service reserve (DSR) guarantee for the benefit of XpFibre Groupe on 30th December 2025. The €175 million DSR guarantee issued by AGE replaces a portion of an existing DSR facility provided by various banks.
This transaction represents AGE’s second transaction with XpFibre Groupe, following the issuance of a financial guarantee on 13-year senior secured fixed rate notes in April 2025. XpFibre Group is the largest independent Fibre-to-the-Home operator in France.
Raphaël de Tapol, Directeur Général of AGE, commented:
“We are very pleased to have completed this second transaction for XpFibre Groupe, and for this to have been accomplished in the span of only eight months. We look forward to further strengthening our relationship with this major issuer in the French fibre sector and continuing to grow our presence in the European infrastructure market more generally.”
Yannick Kouam, Director, Infrastructure Finance of AGE commented:
“Our DSR guarantee is a cost-effective alternative to traditional DSR facilities offered by banks and we are delighted that XpFibre Group has recognised the value it can provide. We believe we will increase our activity in the European fibre sector, and in the wider telecom space, in the years to come, both by issuing our financial guarantees on senior debt issuances and through similar DSR guarantees.”
Domiciled in Paris, AGE conducts Assured Guaranty’s financial guarantee business in continental Europe. AGE is rated AA by S&P Global Ratings and AA+ by Kroll Bond Rating Agency.
A&O Shearman served as AGE’s legal adviser on the transaction.
IMPORTANT NOTICE
All of the securities have been sold, and this announcement is for information purposes only. This announcement does not constitute an offer to sell or the solicitation of an offer to buy any securities.
The securities described herein have not been and will not be registered under the United States Securities Act of 1933, as amended ("Securities Act"), or with any securities regulatory authority of any state or jurisdiction of the United States, and may not be offered, sold or transferred, directly or indirectly, in the United States absent registration under the Securities Act or an available exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and the securities laws of any state or other jurisdiction of the United States.
*AGE is an insurance company registered in the Paris Trade and Companies Register (company number 852 597 384), authorised and regulated by the Autorité de Contrôle Prudentiel et de Résolution (ACPR), and governed by the French Insurance Code.
AGE is a subsidiary of Assured Guaranty Ltd. (AGL and, together with its subsidiaries, Assured Guaranty). Through its subsidiaries, Assured Guaranty provides credit enhancement products to the U.S. and non-U.S. public finance, infrastructure and structured finance markets. Assured Guaranty also participates in the asset management business through its ownership interest in Sound Point Capital Management, LP and certain of its investment management affiliates. AGL is a publicly traded (NYSE: AGO), Bermuda-based holding company. More information on AGL and its subsidiaries can be found at: AssuredGuaranty.com
Any forward-looking statements made in this press release reflect AGL’s current views with respect to future events and are made pursuant to the safe harbour provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. These risks and uncertainties include, but are not limited to, difficulties executing Assured Guaranty’s business strategy; the demand for Assured Guaranty’s financial guarantees; adverse developments in Assured Guaranty’s guaranteed portfolio; actions that the rating agencies may take at any time with respect to any of AGL’s insurance subsidiaries’ financial strength ratings, and/or of any securities AGL or any of its subsidiaries have issued and/or of transactions that AGL’s insurance subsidiaries have insured; other risks and uncertainties that have not been identified at this time; management’s response to these factors; and other risk factors identified in AGL’s filings with the U.S. Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which are made as of January 14, 2026. Assured Guaranty undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
