LONDON (Reuters) - British broadband company Hyperoptic said it has raised 250 million pounds from eight banks to extend its full-fibre network that is capable of delivering a 1Gbps service to 50 towns and cities by 2019.
The company said the investment would fully fund its plan to reach 2 million homes and businesses by 2022, and then expand its network to 5 million premises by 2025.
Britain's government has set out a plan to improve broadband speeds, including the gold standard of running fibre-optic connections all the way to premises. Only four percent of connections in Britain are full-fibre, compared with 71 percent in Spain and 89 percent in Portugal.
Hyperoptic's Chief Executive Dana Tobak said securing the financial backing was testament to the strength of Hyperoptic's business model and its proven track record for delivery.
"All our teams are forging ahead with one rally cry: Let's Gigabit Britain," she said.
Founded in 2011, Hyperoptic largely works with developers and freeholders to install superfast fibre-optic connections to residents and businesses.
Its network, which offers speeds 22 times the national average, is currently available to nearly 500,000 premises, it said.
It was advised by LionTree Advisors and the deal was co-led by BNP Paribas and ING, with a funding club of eight Tier 1 banks including RBS, Societe General, RBC, HSH, NIBC and Barclays.
(Reporting by Paul Sandle; Editing by Kirsten Donovan)