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Press release.


nexfibre secures £250 million for full fibre broadband rollout


17 July 2023
  • nexfibre has secured £250 million debt investment to support its rollout of hyper-fast broadband
  • This investment forms part of nexfibre’s £3.1 billion fully underwritten and fully syndicated debt financing
  • This £3.1 billion debt financing is the second largest in the UK digital infrastructure market to date

 

nexfibre, a new next generation fibre network, has secured a £250 million commitment to support the rollout of hyper-fast broadband across the country.

This debt investment comes from the UK Infrastructure Bank and forms part of nexfibre’s £3.1 billion fully underwritten and fully syndicated debt financing, which is the second largest seen in the UK digital infrastructure market to date.

In addition, nexfibre has secured £1.4 billion in equity commitments from joint venture partners InfraVia Capital Partners, Liberty Global and Telefónica, meaning that nexfibre is fully financed to deliver its plan of rolling out its network to 5 million homes by 2026.

Last month, nexfibre’s anchor tenant Virgin Media O2 launched commercial services on nexfibre’s XGS-PON full fibre network for the first time. nexfibre and Virgin Media O2 intend to wholesale their networks to other third-party internet service providers. The combination will create the UK’s first national-scale challenger to BT Openreach, boosting choice and competition in the market.

Bernardo Quinn, CEO at nexfibre said:

“With this £250 million investment from the UKIB we have secured the second largest debt financing in the UK digital infrastructure market.

“With an investment programme of £4.5 billion, nexfibre is well capitalised and is now rolling out its new, hyper-fast broadband to 5 million homes and businesses across the country, reaching underserved communities in semi-urban and suburban areas.

“nexfibre’s financial stability means the company is well placed to deliver on its mission and support the Government’s ambitions to make gigabit broadband available nationwide by 2030.”

Full-fibre broadband offers the fastest and most reliable broadband available and is critical to the delivery of multi-gigabit speeds in the future while being more energy-efficient and less carbon intensive than copper connections.

nexfibre will initially roll out fibre to 5 million homes not currently served by Virgin Media O2’s network by 2026, with the opportunity to expand to an additional 2 million homes.

 

Notes to Editors

  • nexfibre is a joint venture between InfraVia Capital Partners, Liberty Global and Telefónica and is financed with £4.5 billion of equity and debt investment.
  • nexfibre will initially roll out fibre to 5 million homes not currently served by Virgin Media O2’s network by 2026, with the opportunity to expand to an additional 2 million homes.
  • nexfibre’s investment will provide a major boost to the UK’s digital economy and make a significant contribution to the Government’s gigabit broadband ambitions.
  • Virgin Media O2 is nexfibre’s anchor wholesale tenant, as well as network construction partner.
  • nexfibre and Virgin Media O2 intend to wholesale their networks to other third-party internet service providers creating the UK’s first national-scale challenger to BT Openreach, boosting choice and competition in the market.
  • For more information on today’s announcement, see: UKIB story hereUKIB story here