UK Fiber Operator Secures £2.3 Billion Funding

UK broadband operator CityFibre raised a total of £2.3 billion from shareholders and existing lenders. The company stated that the funding would accelerate its next phase of growth in the country, with a prospect of making acquisitions.

CityFibre stated the financing includes £500 million in new equity from shareholders, including Infrastructure at Goldman Sachs Alternatives, Abu Dhabi’s Mubadala Investment Company, and Antin Infrastructure Partners. A so-called accordion facility of £800 million is also available to help drive expansion through the acquisition of full fiber assets, and will be used to finance M&A. The company added that it has agreed a £960 million expansion of existing debt facilities, supported by lenders including a host of UK financial institutions, BBVA, and Societe Generale.

The operator hit a milestone of reaching 4.5 million premises with its full fiber network over the past 12 months, as well as announcing its first year of profitability. It is aiming to double its customer base by the end of 2025. Its funding comes two years after speculation that the operator was a takeover target for Virgin Media O2. It has been targeting increased investment since that time, warning it would run out of cash by mid-2025.