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UK's CityFibre secures $1.55 billion of capital, including from UAE fund

By Reuters

LONDON – British fibre broadband company CityFibre said on Thursday it had raised 1.125 billion pounds ($1.55 billion) to support the rollout of its network, including equity from new investors Mubadala Investment Co and Interogo Holding.

The company, which is challenging BT in the race to build fibre, said the funds comprised 825 million pounds of equity and a 300 million increase in its banking facilities.

It said Abu Dhabi sovereign fund Mubadala Investment Company and Interogo Holding, a foundation-owned investment group, would join existing investors Antin Infrastructure Partners and Goldman Sachs, as minority shareholders as a result.

CityFibre Chief Executive Greg Mesch said the funds would not only underpin its rollout to up to 8 million homes across 285 cities, towns and villages, but would also enable it to participate in the government’s “Project Gigabit” programme to extend its network to rural areas.

($1 = 0.7239 pounds)