by The broadband company Cityfibre has concluded a financing contract of £ 2.3 billion in order to support its finances and promote further growth.
The fiber broadband specialist, which is questioned at BT’s OpenReach, said that the deal would include £ 500 million in the new financing of existing shareholders such as Goldman Sachs and Abu Dhabis Sovergn Investment Fund Mubadala.
The group has also expanded its current debt facilities by 960 million GBP and has agreed to have a further credit facility of 800 million GBP, which enables a potential gradual increase in debt.
After CityFibre had said, it is possible that there is a “material uncertainty” about its ability to continue without further financing in his accounts for 2023.
However, the company said that it has reported its first “overall year of profitability” in the past 12 months.
It is expected that the group of smaller alternative networks, which are called old netts, will be found with fresh financing in order to consolidate their position on the market.
There are pressure on independent companies from large players OpenReach and Virgin Media O2 and high interest rates.
Cityfibre is looking for significant growth this year after he has completed a big degree with Sky.
Greg Mesch, Managing Director of Cityfibre, said: “This financing round will commission the next growth phase of CityFibre if we consolidate the Altnet sector, accelerate the pace of customer connections and unleash the full power of our market-leading network for the benefit of all of our partners, your customers and the British economy.
“There are great opportunities for Cityfibre, and it is proof of the success of the company that we are supported so strongly by our lenders and shareholders.
“This multibillion pound investment in a critical digital infrastructure will offer significant advantages throughout the Great Britain, which helps to realize the potential and to unlock economic growth.”
Chancellor Rachel Reeves said: “Today’s announcement shows that Great Britain attracts billions of pounds, including the national asset fund that drives growth in British companies.
“The investment in our digital infrastructure is the key to ensure that our economy is suitable for the future.”
