Netomnia and its internet service provider sister firm YouFibre have defied the more restrictive financial picture confronting fibre builders by securing £230M in debt financing.
Netomnia has successfully done this debt financing from a syndicate of six bank lenders that includes HSBC UK, ING, NIBC, RBC, Standard Chartered, and UKIB. The finance package also includes an accordion that can be raised in the future to support the company’s sustained expansion.
The package includes an accordion, which will allow Netomnia to raise its line of credit with the lenders, and is intended to “support the continued growth of the business”, according to Netomnia.
Netomnia’s growth was characterised as “a significant boost towards the Government’s objective of 85% Gigabit-capable coverage by 2025” by UK Infrastructure Bank, a state-owned agency focused on funding local and regional projects.
Netomnia, based in Gloucestershire, said the funding came at a “critical juncture” in its network expansion.
The operator just exceeded 410,000 premises in its fibre rollout, but has only connected 28,000 customers so far.
Wil Wadsworth, CFO at Netomnia and YouFibre, says, “We are very pleased to welcome this new group of lenders to Netomnia and are thrilled they have chosen to support the continued acceleration of our business. The enthusiasm from these institutions to support our business is a testament to our successes at Netomnia and YouFibre, and our unique approach to building our full fibre network and providing best-in-class Internet speeds and services to customers across the UK.
“Everyone in the UK is impacted by the rising cost of living, and interest rates are hitting businesses and families alike. Now more than ever it’s vital that we continue to build our network at pace to provide better and more affordable broadband to as many homes and businesses as we can.”
Rothschild & Co and Allen & Overy advised Netomnia and YouFibre.
Netomnia is a fiber-to-the-premises (FTTP) broadband provider that connects homes and businesses. The company is building full-fiber broadband infrastructure and networks across the UK to provide symmetrical multi-gigabit services, allowing clients to enjoy reliable internet speeds that fit their needs. Netomnia was founded in London, UK in 2019 by by Jeremy Chelot, former CEO of Community Fibre.
