CityFibre secures £2.3bn in funding to fuel broadband network expansion
CityFibre, the UK’s largest independent full fibre platform, has reached agreement with its shareholders and
CityFibre, the UK’s largest independent full fibre platform, has reached agreement with its shareholders and existing lenders on a major £2.3bn financing round, accelerating its next phase of growth.
The financing includes £500m in new equity secured from CityFibre shareholders, Infrastructure at Goldman Sachs Alternatives, Antin Infrastructure Partners, Mubadala Investment Company and Interogo Holding, underscoring their continued commitment to CityFibre’s long term strategy and the company’s role in providing critical digital infrastructure across the UK.
CityFibre has also agreed a committed £960m expansion of its existing debt facilities, supported by lenders including ABN AMRO, BBVA, Crédit Agricole CIB, ING, Intesa Sanpaolo IMI CIB, Lloyds, the National Wealth Fund, NatWest, SEB and Société Générale. The facility will support CityFibre’s continued network investment and enable it to rapidly connect hundreds of thousands of new customers across its nationwide network.
An accordion facility of £800m is also being made available to help drive CityFibre’s continued expansion through the acquisition of full fibre network assets. This facility will be used to finance the company’s M&A pipeline and cement its position as the sector consolidator.
Greg Mesch, CEO of CityFibre, said: “This round of financing will supercharge CityFibre’s next phase of growth, as we consolidate the altnet sector, accelerate the pace of customer connections and unleash the full power of our market-leading 10Gb XGS-PON network, for the benefit of all our partners, their customers and for the UK economy.
“There is huge opportunity ahead for CityFibre and it is testament to the success of the company that we have such strong backing from our lenders and shareholders. This multi-billion-pound investment into critical digital infrastructure will deliver significant benefits across the UK, helping to realise potential and unlocking economic growth.”
This investment marks a significant moment in upgrading the UK’s digital infrastructure. It will deliver world-class infrastructure and services to millions of consumers and businesses and provide the digital foundations for the UK’s economic growth for decades to come.
Chancellor of the Exchequer, Rachel Reeves, said: “Today’s announcement shows Britain is attracting billions of pounds of investment, including through the National Wealth Fund, driving growth across British businesses.
“Investing in our digital infrastructure is key to ensuring our economy is fit for the future. Through our Plan for Change we’re growing the economy by boosting investment in Britain and working hand in hand with businesses to create jobs, to put more money in working people’s pockets.”
Secretary of State for Technology, Peter Kyle said: “This investment in CityFibre is welcome news. It’s proof our telecoms industry is driving investment into the UK, as well as building the digital foundations that will serve generations to come.
“The success of the UK’s network providers will help accelerate the rollout of gigabit-capable broadband to millions of homes and businesses across the country. I hope to see even more success stories like this one, because this sector is critical not just to improving internet speeds, but to transforming quality of life for communities and creating opportunities in every part of the country as part of our Plan for Change.”
Over the past 12 months, CityFibre has announced its first full year of profitability1, launched Sky’s full fibre and Gigafast+ services across CityFibre’s nationwide network, completed the integration of Lit Fibre, announced the acquisition of Connexin’s full fibre infrastructure2 and reached more than 4.5 million premises with its full fibre network, over half way to CityFibre’s milestone of 8 million premises.
CityFibre is advised by Evercore on the agreement, which is subject to final legal approval.
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