News
The fibre network operator says the funds will be used to help it reach its goal of passing one million homes with fibre-to-the-home (FTTH) by 2027
Today, UK altnet Gigaclear has announced it has agreed £1.5 billion in new debt financing, with the funds coming from multiple sources, including ABN Amro Bank NV, Credit Industriel et Commercial SA, HSBC Holdings Plc, Lloyds Banking Group Plc, and NatWest Group Plc.
The credit line will see Gigaclear receive an initial £1 billion, with the option to increase this loan by a further £500 million.
Gigaclear claims to be the UK’s largest rural fibre provider, having already deployed its fibre network to around half a million premises in 24 counties.
The operator is aiming to increase this total to 1 million homes by 2027, a feat that would position it as one of the largest networks in the country.
Achieving this ambitious goal, however, will be easier said than done in today’s economic climate. With interest rates soaring, altnets around the country are being forced to put the brakes on their rollout plans, while others are exploring their strategic options. The industry’s largest operator, BT, has long claimed that the UK’s bustling altnet landscape is overcrowded and will not be sustainable. Consolidation is to be expected in 2024, with the broadband industry already seeing some movement in this regard.
For Gigaclear, however, sourcing funding appears to be no issue. Earlier this summer, Gigaclear announced an equity investment of £420 million from Equitix. Combined with this week’s new funding, this brings Gigaclear’s total funds raised this year to almost £2 billion.
“By securing this debt funding, we’ve shown that despite high levels of volatility in the sector there remains an appetite among lenders to support fibre operators that can demonstrate a robust business model. Not only is it an endorsement of Gigaclear’s mission to take its full fibre broadband to underserved, rural communities across England but it is also reflection of the great things being achieved by the team at Gigaclear,” said Gigaclear CEO, Gareth Williams.
“Gigaclear’s resolve to reach more than one million premises by 2027 is supported by this announcement, which is nothing less than a vote of confidence in us successfully achieving our goal.”
What will the altnet landscape look like in 2024? Join the industry in discussion at the Connected North conference live in Manchester
Also in the news:
It’s time for action: COP28 and keeping 1.5°C alive
Mitratel snaps up 803 telecoms towers for $113m
Sateliot partners with t42 to sign 5G IoT Maritime deal
