Hyperoptic raises £250 million to accelerate UK full fibre growth growth
UK gigabit broadband provider, Hyperoptic has completed a debt raise of £250million from eight international banks to extend its full fibre optic network to 50 towns and cities across the country by 2019.
The company says it is is already powering nearly half a million homes and businesses with its 1Gb/s service, and that this latest investment funds its commitment to reach two million homes by 2022; then further expand the platform to five million by 2025. Hyperoptic previously secured £100 million in funding to accelerate the deployment of gigabit broadband networks to UK consumers in July last year (see Hyperoptic secures £100M to accelerate UK fibre roll-out).
Hyperoptic’s network expansion is also set to create another 1,500 jobs, which will double its current 600 staff across five offices, and the company plans to recruit a further 400+ employees by the end of this year and another 1,000 by the end of 2019. 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 the co-leads, Royal Bank of Scotland, Societe General, Royal Bank of Canada, HSH Nordbank, NIBC, and Barclays. The issue was heavily oversubscribed, with all of the banks from the 2017 debt financing of £100 million significantly increasing their commitment to Hyperoptic.
In a joint-statement by the two co-leading banks, Jean-Philippe Rouane from BNP Paribas and Jeroen Kleinjan from ING commented: ‘We have continually been impressed with the quality, scope and pace of Hyperoptic’s network, and are proud to partner with the UK’s leader in delivering gigabit speed to every urban centre.’
CEO of Hyperoptic, Dana Tobak, said: ‘Such large financial backing from prestigious investors is testament to the strength of Hyperoptic’s business model and proven track record for delivery. All our teams are forging ahead with one rally cry: Let’s Gigabit Britain.’
Minister for Digital Margot James added: ‘We recently announced plans for a nationwide full fibre broadband network to build a Britain that's fit for the future. Commercial investment will play a crucial part of this, and Hyperoptic's commitment to deliver gigabit connectivity to more than 50 UK towns and cities shows that they match our ambitions.’