Wednesday, 16 January 2019

CityFibre secures £1.12bn debt package to fast-track UK fibre rollout

By Chris Kelly, Total Telecom
Tuesday 18 December 18

The package will be used to underpin CityFibre's capital investment in the expansion of the UK's fibre network

CityFibre has announced a £1.12 billion debt package to fund the first part of its £2.5 billion nationwide full fibre rollout plans in the UK. The facility was provided by a consortium of 7 major international banks…

CityFibre has announced a £1.12 billion debt package to fund the first part of its £2.5 billion nationwide full fibre rollout plans in the UK.

The facility was provided by a consortium of 7 major international banks, including Deutsche Bank, Lloyds Bank, Natwest and ABN Amro.

CityFibre plans to use the funds to rollout fibre to the home (FTTH) connections to 5 million homes and businesses across the UK, by 2025.

“The appetite from these institutions to support our financing is further evidence that CityFibre’s strategy is the right one for the UK.

“As our networks are rolled out, this will benefit everyone, driving innovation and increasing fibre penetration across the UK, providing the future-proof digital connectivity the UK needs.

“CityFibre’s target to reach five million homes by 2025, as well as thousands of businesses and public-sector sites, will catalyse huge economic growth in regional towns and cities across the country,” said CityFibre’s chief finance officer, Terry Hart.

The debt package will be used to finance the rollout the first 2 million of CityFibre's FTTH connections. The debt package includes a £775 million seven-year capex facility and a £45 million revolving overdraft.

Also in the news:

CityFibre and Arqiva launch the UK's largest small cell pilot  

Ofcom wants multiple, competing, nationwide fibre networks across the UK

CityFibre unveils £2.5bn fibre funding plan for the UK

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