Gigabit broadband provider Hyperoptic today announced a debt raise of £250m from eight leading international banks, aimed at powering its full fibre optic network across the UK.
The round was led by ING and BNP Paribas, with RBS, Societe Generale, RBC, HSH, NIBC and Barclays also participating.
The raise will fully fund Hyperoptics project to reach 2m homes by 2022, and then further expand the platform to 5m homes by 2025.
Chief executive Dana Tobak told City A.M. the provider currently serves around one in six residences in central London, and will be making the city its top priority as it continues full fibre expansion.
"Were doing our best to install as much fibre in the city as we can," she said in a call.
"Were looking to get London as fibred-up as possible. We have a new internal model for that, and 'Lets Gigabit London' is our first priority."
The government unveiled its target to connect 15m UK homes to full fibre broadband by 2025, one third of which Hyperoptic says it can achieve on its own with no help from taxpayers.
Read more: Government aims for full fibre broadband in every UK home by 2033
City A.M. understands the eight banks will also act as sources of future funding for Hyperoptic's plans once it exhausts the current round, and seeks to go above its current 5m target.
The majority of today's funding will be spent on hiring more engineers, as the company requires more staff to keep plowing ahead. Its network expansion will create another 1,500 jobs over the next two years, more than doubling its current 600 staff.
Hyperoptic has already surpassed its annual target for the year in terms of homes it wants to hook up to full fibre, and Tobak believes that "by bringing on more engineers, we'll be able to do things faster".
The government's minister for digital Margot James said: "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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