Broadband provider Ogi has secured a £45m funding deal with the Cardiff Capital Region (CCR) to support its growth plans. The funding, Wales’ largest alternative telecoms firms, includes a new multi-million-pound equity injection from its majority shareholder, Infracapital. Ogi intends to extend its full fibre network across the ten local authority areas in the CCR. These areas include Blaenau Gwent, Bridgend, Caerphilly, Cardiff, Merthyr Tydfil, Monmouthshire, Newport, Rhondda Cynon Taf, Torfaen, and the Vale of Glamorgan.
The £45m funding comes from the CCR’s £1.2bn City Deal, with the specific repayment term and interest rate undisclosed. The CCR, established as the first joint corporate committee in Wales, seeks to reinvest capital and interest received from investments. As part of its growth strategy, the CCR can now prudently borrow funds. This loan to Ogi is the largest in value provided by the CCR to an individual firm.
Ogi’s high-capacity network spans across the south Wales trunk road network into England, catering to the increasing demand for cloud computing, AI, and data storage. Since its launch in 2021, Ogi has connected over 100,000 premises in South Wales with full fibre connectivity, telephony, and business IT services, with one in five premises already signed up as customers.
Ogi’s CEO, Ben Allwright, expressed the company’s commitment to becoming a leading Welsh telecoms firm and highlighted the potential for growth in southeast Wales. The Chair of the CCR, Councillor Mary Ann Brocklesby, commended Ogi for its efforts in enhancing connectivity in the region. Deloitte advised Ogi on the transaction, with CMS Law serving as the company’s legal counsel. Ogi confirmed that its community programmes outside the CCR, including in Pembrokeshire, will continue as planned.
This significant funding milestone reinforces Ogi’s mission to ensure Welsh communities stay connected and up-to-date with technological advancements. The partnership with CCR signifies a strategic move towards expanding Ogi’s presence across Wales and fostering economic development in the region.