London-based CityFibre, an independent telecommunications network provider, has secured £2.3B (approximately €2.6B) in a financing round to support its growth.

This funding includes £500M (approximately €5.7M) in new equity investment from shareholders such as Goldman Sachs Alternatives, Antin Infrastructure Partners, Mubadala Investment Company, and Interogo Holding.

Alongside the equity injection, the UK company has also secured a £960M expansion of its existing debt facilities, with backing from a robust group of international lenders including ABN AMRO, BBVA, Crédit Agricole CIB, ING, Intesa Sanpaolo, Lloyds, NatWest, SEB, Société Générale, and the National Wealth Fund.

This funding will enable CityFibre to continue its rapid network rollout and connect hundreds of thousands of new homes and businesses.

Chancellor of the Exchequer, Rachel Reeves, says, “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.”

CityFibre has added an £800M (approximately €920M) accordion facility to fund future M&A opportunities. This strategic tool positions the company to acquire additional full fibre network assets as it continues building scale and market leadership.

Greg Mesch, CEO of CityFibre, says, “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.

In the past year, the UK company has achieved its first full year of profits. It launched Sky’s full fibre and Gigafast+ services across CityFibre’s network and integrated Lit Fibre.

The company also acquired Connexin’s full fibre infrastructure and reached over 4.5 million homes with its full fibre network, more than halfway to its goal of 8 million homes.

“There is a 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,” adds Mesch.

CityFibre: Open-access fibre network

Led by Greg Mesch, CityFibre is constructing an open-access fibre network designed for modern data needs.

The company focuses on improving communities in the UK by providing better digital services, supporting businesses, and contributing to the economy.

With a growing network, CityFibre works with major Internet Service Providers and mobile operators, including TalkTalk, Three, Vodafone, and Zen, as well as smaller providers. This allows them to offer fast and reliable broadband, Ethernet, and mobile connections to homes, businesses, schools, and hospitals.

Currently, CityFibre has connected nearly two million premises, and its rollout program aims to eventually serve one-third of the UK, providing access for approximately 8 million homes, 800,000 businesses, 400,000 local authority sites, and 250,000 5G access points.

Secretary of State for Technology, Peter Kyle, says, “This investment in CityFibre is welcome news. It’s proof that 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.”