Scotland’s Deputy First Minister Kate Forbes is set to unveil the new capital secured by the Edinburgh and Inverness-based company as it prepares to deliver a major expansion of its fibre network throughout rural Scotland.

The company, which has already connected around half of all the rural premises throughout the Highlands to full fibre infrastructure, has now secured a further £50m, with £40m coming from Alpha Real Capital and a further £10m from the Scottish National Investment Bank.

The new funding ensures that Highland Broadband has the capital as well as the capability and capacity to continue the expansion of its fibre network across rural Scotland and remains on track to extend its reach to 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 £10m from the Scottish National Investment Bank. This takes the Bank’s total investment to £60m, which has helped Highland Broadband raise an additional £40m 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 £50m 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 Alpha Real 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 Alpha Real, 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.”