CityFibre secures £2.3bn to fund expansion

(Sharecast News) - Broadband network CityFibre said on Monday that it has reached agreement with its shareholders and existing lenders on a £2.3bn financing round to accelerate the next phase of its growth. The financing includes £500m in new equity from existing shareholders such as Goldman Sachs, Antin Infrastructure Partners and Abu Dhabi's Mubadala Investment Company.

The Openreach rival also said its committed debt facilities have been expanded by £960m, supported by lenders including ABN AMRO, BBVA and Crédit Agricole, among others.

In addition, it highlighted a new £800m accordion facility to "catalyse" growth through M&A and cement the company's position "as the sector consolidator".

Chief executive Greg Mesch 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."