Broadband provider Ogi has secured a significant funding deal of £45 million with the Cardiff Capital Region (CCR) to support its growth plans. This funding marks a substantial milestone for the telecommunications company, which is one of Wales’ largest alternative providers in the industry. In addition to the loan from the CCR, Ogi has also received a substantial equity injection from its majority shareholder, Infracapital.
Ogi has outlined that the funding will be instrumental in expanding its full fibre network across the ten local authority areas within the CCR region. These areas include Blaenau Gwent, Bridgend, Caerphilly, Cardiff, Merthyr Tydfil, Monmouthshire, Newport, Rhondda Cynon Taf, Torfaen, and the Vale of Glamorgan. The investment has been sourced from the CCR’s City Deal, which is on the brink of being fully allocated from its £1.2 billion fund. Specific details regarding the loan terms and interest rate have not been disclosed.
The CCR, which recently achieved legal entity status as the first joint corporate committee in Wales, aims to establish a sustainable investment approach with its City Deal funds. The committee plans for capital and interest returns to be reinvested to create an ongoing cycle of funding for development projects. Moreover, with its new borrowing capabilities, the CCR has facilitated this substantial loan to Ogi, representing the largest individual investment made by the region to date.
Ogi’s expansion efforts are not limited to the Cardiff Capital Region, as the company’s high-capacity network extends into the south Wales trunk road network, reaching into England. This infrastructure has been designed to cater to the increasing demand for services such as cloud computing, artificial intelligence, and data storage. By enhancing Wales’ connectivity and attractiveness to datacentre operators, mobile carriers, and hyperscalers, Ogi is contributing to the region’s digital transformation.
Since its inception in 2021 with initial investment support from Infracapital, Ogi has made significant strides in providing full fibre connectivity, telephony, and IT services to underserved communities across Wales. The company has already connected over 100,000 premises in South Wales, with a notable proportion of residents becoming customers. Each community benefiting from Ogi’s fibre network receives a substantial capital injection, with long-term economic benefits projected to be considerable.
Ben Allwright, Ogi’s chief executive, expressed pride in the company’s accomplishments and vision for becoming a leading telecommunications provider in Wales. He highlighted the strategic significance of partnerships with entities like the CCR in driving Ogi’s growth agenda. The chair of the CCR, Councillor Mary Ann Brocklesby, commended Ogi for its contributions to regional development and emphasized the importance of connectivity in advancing opportunities across the Cardiff Capital Region.
The transaction between Ogi and the CCR was facilitated with advisory support from Deloitte, while CMS Law provided legal counsel for both Ogi and Infracapital. Ogi has affirmed its commitment to ongoing projects in communities outside the CCR, underscoring its dedication to expanding connectivity and digital infrastructure across Wales.