Financial institutions back CityFibre with £1.12bn infrastructure debt
Seven financial institutions have backed the first phase of CityFibre’s UK investment plan with a £1.12bn (€1.25bn) infrastructure debt package.
CityFibre - which is jointly owned by Goldman Sachs’ West Street Infrastructure Partners and Antin Infrastructure Partners - has agreed the debt package with ABN AMRO, Deutsche Bank, Lloyds Bank, Natixis, NatWest, Santander and Société Générale.
The fibre network infrastructure provider said the debt package includes a £775m seven-year capex facility and £45m revolving overdraft and working-capital facility. It also includes a £300m accordion facility.
In October, CityFibre announced a £2.5bn investment plan to expand its full fibre network.
The debt package will be used to fund the deployment of the first two million homes of CityFibre’s five million homes target and will expand CityFibre’s existing full fibre networks, CityFibre said.
Terry Hart, CityFibre’s CFO, said: “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.”