London-based telecom infrastructure provider CityFibre has secured £2.3 billion (€2.6 billion) in new financing to support its aggressive expansion across the UK.
The raise includes £500 million (€580M) in fresh equity from shareholders such as Goldman Sachs Alternatives, Antin Infrastructure Partners, Mubadala Investment Company, and Interogo Holding.
Alongside the equity, the firm also extended its debt facilities by £960 million, supported by a consortium of international banks including ABN AMRO, Crédit Agricole CIB, ING, Lloyds, NatWest, and Société Générale. Additionally, CityFibre introduced an £800 million (€920M) accordion facility to fund potential mergers and acquisitions in the sector.
Accelerating Fibre Rollout and Consolidation
With this new war chest, CityFibre plans to supercharge its rollout of 10Gb XGS-PON fibre networks, targeting both underserved and competitive areas in the UK. CEO Greg Mesch emphasized the strategic aim to accelerate customer connections, consolidate the alternative network (altnet) market, and solidify CityFibre’s position as a leader in the digital infrastructure race.
“This round of financing will supercharge CityFibre’s next phase of growth… and unleash the full power of our market-leading network,” said Mesch.
The Chancellor of the Exchequer, Rachel Reeves, praised the deal, calling it evidence of Britain’s attractiveness for large-scale infrastructure investment:
“Through our Plan for Change, we’re growing the economy by boosting investment in Britain and working hand in hand with businesses to create jobs.”
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Rapid Progress and Industry Support
CityFibre’s network now reaches 4.5 million homes, with ambitions to cover one-third of the UK, including 8 million homes, 800,000 businesses, 400,000 local authority sites, and 250,000 5G access points. The company achieved its first profitable year, integrated Lit Fibre, acquired Connexin’s full-fibre assets, and helped launch Sky’s Gigafast+ on its infrastructure.
Peter Kyle, UK Secretary of State for Technology, noted:
“This investment is proof our telecoms industry is building the digital foundations that will serve generations to come.”
A Clear Vision Forward
Founded and led by Greg Mesch, CityFibre positions itself as a wholesale, open-access fibre provider working with ISPs like Vodafone, Three, TalkTalk, and Zen. The company’s focus remains on future-proofing UK connectivity, enabling economic growth, and bridging the digital divide in both rural and urban communities.
