GoFibre's Momentum: 125m Funding Secured for Scotland's Rural Broadband
Deal News | Aug 18, 2025 | Scottish National Investment Bank Plc
Scottish broadband company GoFibre has successfully closed a £125 million funding round to bolster its rollout of gigabit-capable full fibre broadband in Scotland, particularly addressing underserved rural areas. This funding round is led by a £45 million debt facility from the Scottish National Investment Bank, supported by an additional £80 million from Hamburg Commercial Bank. GoFibre, through Project Gigabit, aims to provide fast, reliable broadband to over 130,000 premises spread across the north east and southern parts of Scotland including areas like Borders, East Lothian, Angus, Aberdeenshire, and the Moray coast. The Scottish Government has awarded GoFibre a £105 million contract for its plans in the north east, reinforcing the provider’s commitment to bridging the digital divide. This initiative is pivotal as data from Ofcom highlights a significant digital gap: rural Scotland lags behind, with only 44% having access to full-fibre broadband compared to 71% in urban areas. The national economic and social implications are substantial, with investments aimed at driving both economic growth and societal benefits, aligning with the Scottish National Investment Bank's impact investment strategy.
Sectors
- Telecommunications
- Infrastructure Investment
- Impact Investment
Geography
- Scotland – The activities and investments discussed are focused entirely on the expansion of broadband services within Scotland.
- Germany – Hamburg Commercial Bank, one of the key investors, is based in Germany.
Industry
- Telecommunications – The main focus of the article is on broadband expansion, which directly falls under the telecommunications sector.
- Infrastructure Investment – The article discusses financial investments aimed at supporting digital infrastructure in Scotland, fitting this classification.
- Impact Investment – The involvement of the Scottish National Investment Bank highlights this sector as their investments target both commercial returns and societal benefits.
Financials
- £125 million – Total funding round completed by GoFibre to support broadband rollout.
- £45 million – Debt facility provided by the Scottish National Investment Bank as part of the funding round.
- £80 million – Investment from Hamburg Commercial Bank as part of the funding round.
- £105 million – Contract value awarded by the Scottish Government for Project Gigabit in north east Scotland.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| GoFibre | Target | Company | An independent Scottish broadband company focusing on expanding digital connectivity in rural areas. |
| Scottish National Investment Bank Plc | Lead Investor | Company | A public-owned investment bank in Scotland, focusing on impactful and sustainable economic growth. |
| Hamburg Commercial Bank | Investor | Company | A German bank providing financial support for GoFibre's broadband project. |
| Gresham House | Backer | Company | Provides backing through its British Sustainable Infrastructure Funds for GoFibre's operations. |
| Scottish Government | Project Awarder | Government | Awarded GoFibre a contract for the delivery of the UK government-funded Project Gigabit. |
| UK Government | Funding Provider | Government | Provides funding through Project Gigabit to improve broadband connectivity. |