City fibre are responsible for converting the UK grid from copper cable ISDN wires (which rely on sounds frequencies to transmit data) to fibre optic cables (which transmit data via light frequencies at a much faster rate). As Britain's historically slow broadband speeds have become a bottleneck for productivity, the role CityFibre play in delivering gigabit-speed internet and 5G to not just homes, but businesses, GP surgeries and schools - plus anything else that requires a digital connection.
How did they raise £1.425 Billion?
Such mammoth tasks aren't cheap to execute, so CityFibre has spent the past 6 months on a fundraising campaign which has raised a record 1.425 billion! CityFibre announced it's latest fund raiser this week, and now we know that Mubadala Investment Company, a UAE state-owned sovereign wealth fund, has committed to handing over £300 million in return for an equity stake, which is currently unspecified.
CityFibre CEO Greg Mesch say's:
"We’re thrilled to announce the completion of a £1.125bn capital raise, the largest ever secured to support the UK’s Full Fibre future. We also take great pleasure in welcoming Mubadala and Interogo Holding as new investors in this important project. This new capital will not only underpin our rollout to up to 8m homes across 285 cities, towns and villages"
This is just one action in a long line of interaction between the companies, six months prior, Mubadala bought into CityFibre, injecting £500 Million into CityFibre. Also part of this capital raising was the £825 million investment that came from Interogo Holding. Antin Infrastructure and Goldman Sachs are among shareholders in CityFibre as both companies took part in the 2018 takeover.
It's not cheap levelling up our infrastructure, but investors are happy to invest.