CityFibre has put in place a debt package of £1.12bn from seven financial institutions including ABN AMRO, Deutsche Bank, Lloyds Bank, Natixis, NatWest, Santander and Société Générale.
Proceeds from this infrastructure debt package will be used to fund the first part of CityFibre’s £2.5bn investment plan which will see it roll out full fibre to five million homes, a third of the Government’s target of 15 million homes by 2025.
The debt package includes a £775m seven year capex facility and £45m revolving overdraft and working capital facility. It also includes a £300m accordion facility.
The facility will be used to fund the deployment of the first two million homes of CityFibre’s five million homes target and will expand CityFibre’s existing full fibre networks in 37 previously announced towns and cities nationwide.
As well as connecting homes, CityFibre’s full fibre network is designed to serve all businesses and public sector sites, provide a backbone for mobile operators’ existing locations, and enabling the rollout of 5G and IoT technology.
Terry Hart, CityFibre’s Chief Finance Officer, said: “The appetite from these institutions to support our financing is further evidence that CityFibre’s strategy is the right one for the UK.
“As our networks are rolled out this will benefit everyone, driving innovation and increasing fibre penetration across the UK, providing the future proof digital connectivity the UK needs."