The record debt raise will be used to accelerate the growth of the firm’s 1Gbps full fibre broadband across the UK and create 1,500 jobs.
The £250m debt raise comes from eight international banks and will allow the gigabit broadband provider to extend its full fibre optic network to 50 towns and cities across the country.
The UK’s largest ever single investment for a full fibre optic network provider comes at a time when just 3% of UK premises have access to the gold standard of fibre-to-the-premises (FTTP) broadband.
This figure puts the UK behind almost every other developed nation, currently down at 32nd out of 34 OECD countries.
Hyperoptic is already supplying nearly half a million homes and businesses with its 1Gbps service, giving customers internet speeds 22 times faster than the national average.
This latest investment fully funds Hyperoptic’s project to reach two million homes by 2022, and then further expand the platform to five million by 2025.
The Government’s target is for 15 million premises to have access to full fibre broadband by 2025, as outlined in July’s Future Telecoms Infrastructure Review.
Hyperoptic alone will deliver one third of this target, at no cost to the taxpayer.
Hyperoptic says its target could be reached sooner if more councils develop ’group’ planning agreements such as those it has already signed with Southwark, Thurrock, Brent, Hammersmith & Fulham, Southampton, and the City of London.
As CEO of Hyperoptic, Dana Tobak, observed: “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.”
In the past year, Hyperoptic has expanded its network to 10 additional UK towns and cities, and signed contracts in a further 14, bringing its services to over 50 cities and towns by Q1 2019.
With its continuous investment in network expansion, supported by residential and business demand as well as increasing interest from councils, Hyperoptic is bringing its step-change full-fibre service to more areas of the country – bridging the digital divide and expanding local economies.
Hyperoptic’s network expansion is also set to create another 1,500 jobs, more than doubling its current 600 staff across five offices.
Following this latest funding, the company plans to recruit at least a further 400 employees by the end of this year and another 1,000 by the end of 2019.
The company’s chairman, Boris Ivanovic, added: “Hyperoptic has the vision, determination and means to lead the rollout of gigabit connectivity across this country, and smash the digital divide once and for all. I am proud that we have led by results.
“This latest round of funding is a tremendous recognition of our achievement and provides the impetus for making Hyperoptic the premier full fibre national network.”
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."
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