Rural communities across Scotland are in line for an economic boost in the wake of a new £50 million investment in our ultra-fast broadband network.

Scotland’s Deputy First Minister Kate Forbes has unveiled our newly secured capital as we prepare to majorly expand our full-fibre network throughout rural Scotland.

To date, we’ve connected around half of all rural premises throughout the Highlands to our full-fibre infrastructure. Having now secured a further £50 million investment, with £40 million coming from AlphaReal Capital and a further £10 million from the Scottish National Investment Bank, ensures we have the capital, capability and capacity to continue our expansion and remain on track to reach over 150 towns and villages across rural Scotland in the coming year.

Speaking ahead of her visit to the Grantown Hub to unveil the investment, the Deputy First Minister said:

This is a significant success story for Scotland. The roll-out of Highland Broadband’s network has made a real difference to people and businesses in rural areas, supporting jobs and boosting economic growth.

I am delighted to see substantial new investment flowing into the company and the rural communities it serves, including a further £10 million from the Scottish National Investment Bank. This takes the Bank’s total investment to £60 million, which has helped Highland Broadband raise an additional £40 million of private capital.

Commercial investment in future-proofed broadband infrastructure is a key part of Scotland’s digital strategy. We are working with operators like Highland Broadband to expand full fibre coverage, while also targeting public funding where it is needed most to support communities the length and breadth of Scotland.

Gavin Rodgers, CEO of Highland Broadband, added:

This injection of £50 million of new capital means we have the funding as well as the capability to continue network expansion throughout rural Scotland.

We are delighted to secure the backing of AlphaReal as a new funder and also welcome the ongoing support of the Scottish National Investment Bank.

Raising this capital ahead of a series of important projects means we can focus on operational delivery rather than sourcing further finance.

Brad Bauman, Head of Alternative Credit at AlphaReal, added:

We are delighted to provide this initial funding to Highland Broadband. The highly differentiated business model, quality of the platform and the experienced management team attracted us to provide this funding for digital infrastructure in rural Scottish communities.

We look forward to working with Gavin and his team to expand the company’s base of high-quality digital infrastructure.

Andy Clapp, Executive Director of Investment Portfolio Management at the Scottish National Investment Bank, added:

Highland Broadband has moved from strength to strength, while delivering tangible benefits to rural communities in Scotland.

This funding round will ensure Highland Broadband continues to expand its network, connecting rural Scotland and combatting place-based inequalities. As a significant equity investor, we look forward to working closely with the team as they target a series of important projects.

As the only broadband provider building a network exclusively in Scotland, we are proud to welcome this latest investment and remain committed to closing the digital divide by expanding our full-fibre network across rural communities.