The European Investment Bank (EIB) has agreed to provide GBP 21 million for investment by Hyperoptic to provide 1 Gbps fibre broadband to more than half-a-million homes in cities across the UK. This significant investment from EIB along with Quantum Strategic Partners Ltd. (Quantum), a private investment fund managed by Soros Fund Management LLC, brings the total investment into Hyperoptic to more than GBP 75 million. EIB’s investment along with continued support from Quantum further validates Hyperoptic’s business model, execution ability, and ability to remain the largest 1 Gbps Fibre-to-the-Premises (FTTP) broadband provider in the UK. The larger footprint will enable even more residential and business users to benefit from the UK’s fastest internet speeds using more advanced broadband infrastructure than is currently available through incumbents. This represents the European Investment Bank’s largest ever dedicated backing for an internet network investment in the UK.
“Hyperoptic is excited by the European Investment Bank’s investment, which will further fuel our roll out and addressable market expansion. The confidence of both EIB and Soros Fund Management LLC supports the importance of FTTP in providing a boost to the UK’s digital infrastructure and economy,” said Dana Tobak, CEO of Hyperoptic.
The new eight-year European Investment Bank loan will be used to support Hyperoptic’s planned expansion of 1 Gbps Internet access to urban areas that only have slow access at present. Hyperoptic currently operates in 13 UK cities, but has already announced expansion to 20. The EIB backed network expansion seeks to reach more than 300,000 homes in the next 3 years.
“The European Investment Bank is pleased to support Hyperoptic’s roll-out of super-fast broadband in cities across the UK. This exciting new initiative will transform economic activity, healthcare, education and access to key services and represents the EIB’s first targeted support to address slow urban communications in UK,” said Jonathan Taylor, European Investment Bank Vice President.
Hyperoptic has been growing its network reach by over 100% per year in the past few years and will continue its current pace of growth within existing cities and expanding by opening new ones. With the most flexible product set on the market, Hyperoptic ensures customer satisfaction and an excellent Fibre experience. Recently awarded ISPA’s Best Superfast broadband for the 4th year running, Hyperoptic continues to be a beacon and leader in rolling out 1 Gbps FTTP broadband across the UK.
Since 1975 the European Investment Bank has provided more than GBP five billion for telecom broadband and telecommunications across the UK and has supported investment by Vodafone, EE, British Telecom, Gigaclear, Arqiva and Inmarsat.
Over the last five years the European Investment Bank has provided nearly EUR 13 billion to improve broadband and telecommunications across Europe.
Lending by the European Investment Bank last year totaled GBP 5.6 billion and represented the largest annual engagement since the start of EIB lending in the UK in 1973. This supported nearly GBP 16 billion of overall investment in 40 projects across the country. The European Investment Bank is directly owned by the 28 European Union member states, including a 16% share held by the UK government.
The European Investment Bank’s loan to Hyperoptic is supported by ‘InnovFin – EU Finance for Innovators’, MidCap Growth Finance with the financial backing of the European Union under Horizon 2020 Financial Instruments.
Background information:
About InnovFin
Under Horizon 2020, the EU research programme for 2014-20, the European Commission and the European Investment Bank Group (EIB and EIF) have launched a new generation of financial instruments and advisory services in 2014 to help innovative firms access finance more easily. Until 2020, "InnovFin – EU Finance for Innovators" offers a range of tailored products which will make available more than EUR 24bn of financing support for research and innovation (R&I) by small, medium-sized and large companies and the promoters of research infrastructures. This finance is expected to support up to EUR 48bn of final R&I investments.
Backed by funds set aside under Horizon 2020 and by the EIB Group, InnovFin financial products support R&I activities, which by their nature are riskier and harder to assess than traditional investments, and therefore often face difficulties in accessing finance. All are demand-driven instruments, with no prior allocations between sectors, countries or regions. Firms and other entities located in EU Member States and Horizon 2020 Associated Countries will be eligible as final beneficiaries.
InnovFin MidCap Growth Finance offers long term senior, subordinated loans or mezzanine loans, in order to improve access to finance mainly for innovative larger midcaps (up to 3000 employees), but also SMEs and small midcaps. Loans from EUR 7.5m to EUR 25m will be delivered directly by the EIB.
About Hyperoptic
Hyperoptic is the UK’s leading Fibre-to-the-Premises (FTTP) provider, pioneering the UK fibre gold standard: the country’s fastest, most consistent and reliable Internet service. Its fast, symmetrical gigabit services are over 135 times faster than traditional ADSL speeds. Services are delivered via Hyperoptic’s own dedicated fibre network, which means that customers can always connect to the Internet at the speeds advertised.
Hyperoptic works with property owners, developers and professionals, designing and installing dedicated fibre infrastructure to new buildings, and retrofitting improvements to existing developments. Its award-winning services are currently available to consumers and businesses across 20 cities and towns across the UK. It aims to have its hyper-fast service available to over half a million homes by 2018.
Founded in 2011, the company was recognised for ‘Best Superfast Broadband’ award at the 2016 Internet Service Providers’ Association (ISPA) awards and has held the ISPA award for the last four years in a row.
About Quantum Strategic Partners Ltd.
Quantum Strategic Partners Ltd. (Quantum) is a private investment vehicle that pursues investments globally in a variety of industries across strategies, including buyouts growth equity transactions and structured investments. Quantum seeks to acquire and build businesses in partnership with experienced management teams and seeks to invest in securities and assets that provide attractive risk adjusted returns. The investment advisor to Quantum is Soros Fund Management LLC, a private investment management firm that serves as the principal investment advisor to a number of private investment funds which are managed exclusively for Soros family clients.