Gauteng-based fibre infrastructure provider MetroFibre Networx has secured a R2.5-billion debt funding package from Investec to support its fibre deployment across South Africa.

The funding agreement builds on an existing relationship between the two companies since 2016, when MetroFibre approached Investec for its first round of debt financing.

The financing will be used to extend fibre connectivity into underserviced homes and businesses.

“In a growing and fiercely competitive market, the timely funding arranged by Investec, together with our recent R1.5-billion equity raise, will enable us to take fibre to more individuals and more businesses, giving them the opportunity to participate in the globally connected economy,” said MetroFibre FD Wayne Edwards.

Together with the funding from their capital raise toward the end of 2020, MetroFibre is now well-poised for another phase of strong growth, with plans in place to densify the existing networks and reach an additional 300 000 residential homes across the country over the next three years.

“The fibre market moves quickly, so we need a finance partner that can do the same. Investec has been with us from the beginning, so they understand our business model and what we are working to achieve. We are immensely excited about taking the benefits of high-quality fibre connectivity to the country as a whole. And for that journey to be successful, having the right partners remains paramount,” he said, highlighting the strategic importance of having funds available at this watershed moment for the fibre industry.

Investec Specialised Finance’s Laverne Chetty reiterated that their support for MetroFibre’s next era of growth is about more than just backing a business they believe in.

“Debt funding is usually only possible once a company has a long, established track record. But we saw MetroFibre’s potential very early on and subsequently provided specialised capex funding, structured to promote their growth over time. That funding proved justified as MetroFibre’s growth accelerated meaningfully during 2018 and 2019.”