CityFibre Secures £2.3bn Financing to Power Its Next Growth Phase
CityFibre has secured a £2.26 billion financing package to support the next phase of its expansion and consolidation strategy in the UK fibre market. The package includes £500 million of new equity from existing shareholders, a £960 million extension of existing debt facilities, and an £800 million accordion facility to provide additional flexibility for future growth, including mergers and acquisitions.
According to former CEO Greg Mesch, the funding will accelerate customer connections, support consolidation across the altnet sector, and unlock the full potential of CityFibre’s market-leading 10Gb XGS-PON network. The investment reinforces strong backing from both lenders and shareholders and underlines confidence in CityFibre’s long-term role in the UK’s digital infrastructure.
The announcement has also drawn support at the highest levels of government. The Chancellor of the Exchequer and the Secretary of State for Science, Innovation and Technology both welcomed the investment, highlighting the importance of digital infrastructure in driving economic growth, job creation, and nationwide gigabit broadband coverage.
The new financing follows a challenging period for the sector. Inflationary pressures slowed deployment across the market, prompting CityFibre to tighten costs and reassess its funding needs. This latest raise secures the company’s balance sheet and positions it for renewed momentum.
While CityFibre has not yet set out detailed targets, the scale of the funding – and the inclusion of a substantial M&A facility – signals continued consolidation activity. Following the acquisition of Lit Fibre in 2024, CityFibre is well placed to expand its footprint further as opportunities arise.
Overall, the £2.3 billion raise marks a decisive step forward, giving CityFibre the financial firepower to stabilise, scale, and shape the next chapter of the UK’s fibre broadband market.
