CityFibre lenders face potential £2bn hit in debt restructuring
October 12, 2026 12.22 Europe/London By Julian Clover


Banks financing UK alternative broadband network CityFibre could face losses of up to £2 billion as the company seeks to restructure its debts and secure funding for further acquisitions.

According to The Sunday Telegraph, lenders including NatWest, Lloyds and Société Générale are expected to be asked to accept write-downs on CityFibre’s £3.8 billion debt pile.

The proposed refinancing could involve converting some existing loans into equity alongside reductions in the value of outstanding debt. The precise terms have yet to be agreed, and the impact is expected to vary between lenders.

The restructuring follows a £900 million equity commitment from existing shareholders, including Goldman Sachs and Abu Dhabi’s Mubadala Investment Company.

CityFibre, the UK’s largest independent full-fibre network operator, has been seeking to strengthen its balance sheet while positioning itself to acquire smaller alternative network providers.

The company’s recently published accounts revealed a pre-tax loss of £545 million in 2025, compared with £360 million the previous year. Finance costs approached £400 million, more than twice its annual revenues.

The company has also been reducing costs and slowing network construction as higher borrowing costs and intense competition put pressure on the alternative broadband sector.

CityFibre’s network now extends to approximately 4.8 million premises, with more than 1.1 million customers connected through retail partners including Vodafone, TalkTalk and Sky.

The company is understood to be considering further acquisitions, including Community Fibre, while renewed uncertainty over Virgin Media O2’s proposed £2 billion acquisition of Netomnia could provide another opportunity.

The Competition and Markets Authority has raised concerns about the potential impact of the Netomnia transaction on competition.

CityFibre has acknowledged that its capital structure needs to change to support its acquisition strategy.

In a statement, the company said: “We also recognise that our capital structure needs to evolve and, backed by a £900m equity commitment from our shareholders, we are in discussion with lenders to establish a strong, long-term capital structure for the business and accelerate M&A in the sector.”

The Telegraph reports that the National Wealth Fund, which has invested approximately £300 million of public money in CityFibre, is not expected to be affected by the refinancing.