The funding package includes £500 million in new equity from existing shareholders – Infrastructure at Goldman Sachs Alternatives, Antin Infrastructure Partners, Mubadala Investment Company and Interogo Holding, reaffirming their long-term backing of CityFibre’s strategy.
In addition to the equity, CityFibre has expanded its debt facilities by £960 million, supported by a consortium of leading lenders, including ABN AMRO, BBVA, Crédit Agricole CIB, ING, Intesa Sanpaolo IMI CIB, Lloyds, the National Wealth Fund, NatWest, SEB and Société Générale.
An additional £800 million accordion facility has also been secured to fuel merger and acquisition activity, reinforcing CityFibre’s role as a sector consolidator.
Industry analysts say the financing puts CityFibre in a strong position to lead consolidation of the fragmented altnet market.
With dedicated capital for acquisitions and a scalable 10Gb XGS-PON network, the company is well placed to integrate smaller rivals, expand its national footprint, and deliver cost efficiencies. The move is seen as a strategic effort to create a more unified and competitive alternative to incumbent infrastructure providers.
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.”
The announcement has been welcomed by senior government figures. 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.”
Peter Kyle, secretary of state for technology added: ‘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.’
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