CityFibre has reached agreement with its shareholders and existing lenders on a major £2.3bn financing round, including £500m in new equity secured from existing shareholders, accelerating its next phase of growth.
The new equity secured from shareholders Infrastructure at Goldman Sachs Alternatives, Antin Infrastructure Partners, Mubadala Investment Company and Interogo Holding, underscore their continued commitment to CityFibre’s long term strategy and the company’s role in providing digital infrastructure across the UK.
CityFibre has also agreed a committed £960m expansion of its existing debt facilities, supported by lenders, and this facility will support its continued network investment and connect new customers, alongside a new £800m accordion to support its growth through M&A.
Greg Mesch, CEO of CityFibre (pictured) said: “This round of financing will boost CityFibre’s next phase of growth, as we consolidate the altnet sector, accelerate the pace of customer connections and unleash the power of our 10Gb XGS-PON network.
“This multi-billion-pound investment into critical digital infrastructure will deliver benefits across the UK, helping to unlock economic growth.”
Peter Kyle, Secretary of State for Technology said: "This investment in CityFibre is proof our telecoms industry is driving investment into the UK, and 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."
The recent financing follows a strong 12 months, in which CityFibre has achieved its first full year of profitability, launched Sky’s full fibre and Gigafast+ services across CityFibre’s nationwide network, completed the integration of Lit Fibre, acquired Connexin’s full fibre infrastructure and reached more than 4.5m premises with its full fibre network, over half way to CityFibre’s milestone of 8m premises.