CityFibre, the UK’s leading alternative network provider, has secured a £2.3 billion financing package to fuel its ambitious growth plans, accelerate customer connections, and spearhead consolidation in the fragmented altnet sector.
The landmark deal, announced today, includes £500 million in new equity from existing shareholders—Infrastructure at Goldman Sachs Alternatives, Antin Infrastructure Partners, Mubadala Investment Company, and Interogo Holding—demonstrating strong confidence in CityFibre’s strategy.
The funding also comprises a £960 million expansion of debt facilities from a consortium of top-tier lenders, including ABN AMRO, BBVA, Crédit Agricole CIB, ING, Intesa Sanpaolo IMI CIB, Lloyds, the National Wealth Fund, NatWest, SEB, and Société Générale. Additionally, an £800 million accordion facility has been earmarked to support mergers and acquisitions, positioning CityFibre as a key consolidator in the altnet market.
Industry experts highlight that this financing strengthens CityFibre’s ability to integrate smaller rivals, leveraging its scalable 10Gb XGS-PON network to expand its national footprint and deliver cost efficiencies. The move is seen as a strategic step to challenge incumbent infrastructure providers and create a more competitive broadband landscape.
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Greg Mesch, CEO of CityFibre, stated, “This financing will supercharge our next phase of growth, enabling us to consolidate the altnet sector, accelerate customer connections, and unlock the full potential of our market-leading 10Gb XGS-PON network. With robust backing from our lenders and shareholders, this multi-billion-pound investment will drive significant benefits across the UK, fostering economic growth and digital innovation.”
The announcement has garnered praise from government leaders. Chancellor Rachel Reeves emphasized, “This investment, bolstered by the National Wealth Fund, showcases Britain’s ability to attract billions in business investment. Our Plan for Change is driving economic growth by boosting digital infrastructure, creating jobs, and enhancing prosperity.”
Technology Secretary Peter Kyle added, “CityFibre’s investment is a testament to the strength of our telecoms sector. It will accelerate gigabit-capable broadband rollout, transforming communities and creating opportunities nationwide.”
