UK Infrastructure Bank backs Hyperoptic to support full fibre rollout across the UK

UKIB’s investment forms part of Hyperoptic’s latest debt raise, bringing the total facility amount to over £1.1bn of commitments drawn and available to be drawn, and will ensure that the scale and pace of Hyperoptic’s rollout continues.

Almost half of Hyperoptic’s rollout is for premises with no existing full fibre network infrastructure. The Bank’s financing will directly support Hyperoptic in reaching these locations, helping communities across the country that would otherwise miss out on fast and reliable internet connectivity.

Over a third of the proposed rollout is also expected to connect social housing premises, which are traditionally less likely to have infrastructure in place to support full fibre internet access. The Bank’s investment will provide thousands of consumers in social housing the option of access to gigabit-capable broadband at affordable prices through Hyperoptic’s ‘social tariff’. 
 

Ian Brown, Head of Banking & Investments at UKIB, said:

Reliable internet connectivity is increasingly important to participate in the modern economy and drive forward the UK’s net zero and regional growth ambitions. Our investment in Hyperoptic will ensure that the scale and pace of the full fibre rollout is sustained, specifically in those areas where it’s needed the most, opening up opportunity for numerous communities across the UK. We hope that our commitment will help mobilise further private debt financing for Hyperoptic’s continued network expansion.

Dana Tobak CBE, CEO and Co-founder at Hyperoptic, stated:

Since 2011, we’ve been on a mission to bring ultra-reliable, hyperfast full fibre broadband to businesses and consumers across urban areas and new developments in the UK. We’re acutely aware of the government’s target to achieve 99% gigabit-capable broadband coverage by 2030 and, as an industry, we still have some way to go to achieve it. We welcome the support of the UK Infrastructure Bank, together with other investors, enabling us to continue delivering award-winning gigabit-capable broadband to more people across the UK every day.

Vincent Policard, Partner and co-head of European Infrastructure at KKR and Hyperoptic Board Member, said:

Hyperoptic continues to have a market-leading position and superior customer product in the UK. Securing this additional funding allows the Hyperoptic team to extend the roll out to more premises, making its network more widely available to consumers seeking an enhanced online experience.

Hyperoptic has been majority owned by KKR since 2019.  

Notes to editors

• New digital infrastructure is one of the UKIB’s five priority sectors alongside clean energy, waste, water, and transport.
• For more information on the UK Infrastructure Bank, please contact Catherine Leonard and Archie Hart at: press@ukib.org.uk

The guarantee is part of a wider c.£1.5 billion debt funding package and will facilitate the expansion of Gigaclear’s rollout of fibre-to-the premises (FTTP) broadband.

The Bank’s financing will support improved internet connections provided to an additional 400,000 homes and businesses in harder-to-reach and underserved areas in England.

In line with the Bank’s mandate, the expansion of the rollout will help to boost growth and reduce existing inequalities through improved connectivity, while also supporting the Government’s target for nationwide access to gigabit-capable broadband by 2030.

UK Infrastructure Bank Head of Banking and Investments, Ian Brown, said:

Improving digital infrastructure and lessening digital inequalities is vital for the UK’s net zero and regional growth ambitions.

The Bank’s debt guarantee will support connectivity in areas where it’s needed most, helping to unlock opportunity and productivity.

Gareth Williams, CEO at Gigaclear, said:

By securing this debt funding, we’ve shown that despite high levels of volatility in the sector, there remains an appetite among business 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 a reflection of the great things being achieved by the team at Gigaclear.

Our 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.

The UK Infrastructure Bank deploys its capital through three main instruments – debt, equity and guarantees.