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In its first UK investment since the referendum, the European Investment Bank (EIB) has announced it is giving £21 million to a high-speed broadband project in the UK.
Hyperoptic will use the money to bring 1Gbps fibre broadband to more than 500,000 homes across the country and 300,000 of these will be reached in the next three years, the firm said.
The company already operates in 13 UK cities and plans to expand to 20 in the coming years.
The firm installs and maintains its own fibre-based broadband networks and was formed in 2011. It works with businesses, individuals, and property managers to install its high-speed networks and connections.
The EIB funding is the second biggest investment the company has received during its five years in business. In 2013 billionaire George Soros invested £50m into Hyperoptic.
During its existence the EIB has provided financial support to Vodafone, EE, British Telecom and more UK firms. The bank is backed by the European Union's 28 member states and has loaned €13 billion (£10bn) to European connection projects in the past five years.
"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. The loan from the EIB will run for eight years.
A private investment fund managed by Soros Fund Management LLC also contributed to the investment loan.
According to The Telegraph the deal was discussed before the EU referendum and was set to take place whichever way the vote went.
"They gave us the assurance that whatever way the vote went they would continue,” Dana Tobak, co-founder of the company told the newspaper. "It's easy to make promises, but the fact they actually did it is the key thing."
The investment comes at a time when those looking to bring money to UK based businesses may be wary. However, British firm ARM Holdings, which designs chips, is set to be acquired by Japan's SoftBank for £24 billion.
Although the deal still has to be approved by investors, market analysts told WIRED the approach seemed opportunistic in the wake of the UK's decision to exit Europe.
Softbank, if it had purchased the company before the June 23, would have likely paid "billions" more for the Cambridge-based firm.
This article was originally published by WIRED UK
