Edinburgh-based broadband company, GoFibre, has completed a £125m funding round that will support its delivery of two Project Gigabit contracts in the south and North-east of Scotland, covering the Borders, East Lothian, Angus, Aberdeenshire and the Moray coast.
The round is led by a £45m debt facility from the Scottish National Investment Bank (“the Bank”) alongside a further £80m from Hamburg Commercial Bank (HCOB). GoFibre was advised by Deloitte on the transaction.
GoFibre is an independent Scottish provider, focused on expanding digital connectivity in underserved rural areas. It contributes to regional economic development by using local supply chains and recruiting talent within the communities it is connecting.
Backed by Gresham House’s British Sustainable Infrastructure Funds, GoFibre was recently awarded a £105m contract by the Scottish Government for the delivery of the UK government-funded Project Gigabit in the north east of Scotland.
The Project Gigabit programme enables hard-to-reach communities to access fast, reliable gigabit-capable broadband. The Scottish Government is playing a key role in delivering project procurements in Scotland, working closely with the UK government to deploy funding.
Neil Conaghan, CEO of GoFibre, said: “This is a significant step-change in GoFibre’s position both as a major independent broadband provider, and as a significant company in Scotland.
“Our appointment as the supplier for the biggest Project Gigabit delivery area in Scotland, in the north east, builds on our win earlier this year for the very first Scottish lot to be announced, for the Borders and East Lothian.
“We are excited to play a crucial role in bringing the very best full fibre broadband connectivity to rural areas in Scotland, as part of our mission to bridge the digital divide.
“We are grateful for the support of The Scottish National Investment Bank, HCOB and Gresham House as we continue to build and grow GoFibre.”
): Andy Hepburn, Chief Operating Officer, GoFibre; Ailsa Young, Investment Director of Innovation, Scottish National Investment Bank; Mike Ferguson, Managing Director, Forfar Indoor Sports; Neil Conaghan, Chief Executive Officer, GoFibre
While connectivity has improved in recent years, Scotland’s urban-rural divide remains extensive. Ofcom figures show that just 44% of rural communities have full-fibre coverage, compared to 71% of urban communities.
The Bank is an impact investor, meaning its investments are aimed at delivering both commercial returns and societal benefit. This debt investment further supports digital broadband rollout across Scotland and is aligned to the Bank’s mission to transform places and support those living within them to thrive.
Ailsa Young, Investment Director of Innovation at the Scottish National Investment Bank, said: “GoFibre is a great example of a Scottish scale-up that is targeting growth through delivering tangible local impact. We live in an increasingly digital world where high-speed, reliable internet is essential for accessing services and building and maintaining connections.
“Broadband is a critical service for businesses and communities. This continues to be an important sector for us, so we’re delighted to support GoFibre as it delivers important connectivity to the north east of Scotland.”
The Forfar Indoor Sports Centre is a GoFibre customer. Its Managing Director, Mike Ferguson, said: “As a small business, having reliable and fast connectivity is crucial; everything from our tills to our booking system relies on it.
“With the new service, we’ve been able to make improvements to our business, like taking online bookings, and we can now livestream our curling matches so viewers can watch the action not only across Scotland but internationally too.”
Hans Lötzer, Head of Project Finance at Hamburg Commercial Bank, said: “GoFibre is providing fast and reliable fibre broadband to underserved areas of Scotland with this project, giving over 130,000 households access to digital gigabit infrastructure. We are pleased to support this important initiative with our financing and look forward to supporting the company on its growth path”.
GoFibre is also committed to leaving a lasting legacy in communities. As part of its rollout, the company will launch a further round of its GoFurther Fund, with up to £250,000 in grants being made available to local causes in the north east of Scotland and up to £150,000 in the Borders/East Lothian.