GoFibre, the Edinburgh-based broadband company, has completed a £125 million 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). Deloitte advised GoFibre on the transaction.

GoFibre is an independent Scottish provider, focussed 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’s 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 programme in the north east of Scotland.

The 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 with the UK Government to deploy funding.

Speaking on the new funding and appointment, 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.”

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.

Recommended reading

• Scotland’s Most Remote Areas Get Huge Broadband Upgrade
• GoFibre Hits Milestone With Network Covering 100K+ Rural Premises
• Scots Town Getting Full-fibre Boost Through GoFibre Project

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.”