Ogi Secure £45m Investment to Boost FTTP Broadband Build in Wales

Broadband ISP Ogi, which is building a multi-gigabit speed Fibre-to-the-Premises (FTTP) network across parts of South Wales (UK), has today announced that they’ve secured a new £45m financing package from Cardiff Capital Region (CCR), alongside ongoing equity investment from its principal shareholder, Infracapital, to support their future growth.

The network operator has so far covered a total of 100,000 premises RFS (4th Jan 2024) with their full fibre network – most of them residential – in Wales up to the end of 2023. In addition, they’re home to over 20,000 customers (13th May 2024), which is up from 10,000 on 4th Jan 2024. However, we haven’t seen as much build activity from them in 2024 as we did in previous years, but that may now be about to change.

According to today’s announcement, the new finance package will enable Ogi to extend its reach in the ten local authority areas that make up CCR (Blaenau Gwent, Bridgend, Caerphilly, Cardiff, Merthyr Tydfil, Monmouthshire, Newport, Rhondda Cynon Taf, Torfaen and the Vale of Glamorgan), where it already has an established presence.

The CCR is also home to Ogi’s multimillion-pound and 70km long diverse “high-capacity digital” network (here), which spans the South Wales trunk road into England. This separately stemmed from a 25-year concession agreement with the Welsh Government that is seeing Ogi bring new Dark Fibre and Microduct Access products into the South East region of Wales, while also improving their own network capacity and resilience.

Ogi’s CEO, Ben Allwright, said:

“Right from the start, our ambition has been to become a leading Welsh telecoms company, and the last few years have certainly laid strong foundations for that goal.

With key strategic sites like Aberthaw to the south and the heads of the valleys to the north, there’s massive potential across the capital region – and partnering with CCR at such an exciting time in their own development is the next logical step for Ogi’s growth in southeast Wales.

Together with further investment from our principal shareholder, Infracapital, this is yet another endorsement of our mission to make sure no Welsh community gets left behind.

I’m immensely proud of the work the team at Ogi are doing across Wales, and this news – another leap forward in Ogi’s development – is testament to their commitment to making sure Wales keeps up to speed with the rest of the UK, and the world.”

Councillor Mary Ann Brocklesby, Chair of CCR, said:

“Ogi has taken regeneration to a new level with its initial investment – connecting communities to new possibilities right across the Cardiff Capital Region and beyond. Our investment into Ogi recognises that ongoing commitment to boosting the region, and the work already being done to bring vital connectivity to some of Wales’s biggest towns and villages.”

The announcement doesn’t clarify precisely how many premises (homes and businesses) will benefit from the next phase of their expansion, but it will no doubt be in some service of helping them to reach their first goal of 150,000 premises passed.

Otherwise, Ogi was advised on the transaction by Deloitte and CMS Law acted as legal counsel for Ogi and Infracapital. The new Debt facilities (September 2024 onwards) are provided by the CCR through the South East Wales Corporate Join Committee.

Previously announced build programmes in communities outside of the 10 local authority areas that make up the Cardiff Capital Region – including Pembrokeshire – will continue as planned.

Ogi’s Existing Rollout Locations

• Bridgend: Caerau, Cwmfelin, Garth, Llangynwyd, Maesteg^, Nantyffyllon, Pencoed^, Porthcawl^
• Caerphilly: Blackwood^, Cefn Fforest, Cefn Hengoed, Fleur-de-lis, Hengoed^, Pengam, Ystrad Mynach, Maesycymmer, Pontllanfraith, Tir-y-Berth, Woodfieldside.
• Cardiff^
• Monmouthshire: Abergavenny^, Caerwent, Caldicot^, Chepstow, Crick, Monmouth^, Portskewett, Rogiet, Sudbrook, Undy.
• Newport: Langstone, Llanvaches^, Underwood^.
• Pembrokeshire: Haverfordwest^, Johnston, Milford Haven^, Neyland^, Pembroke^, Pembroke Dock^. Tenby^.
• Rhondda Cynon Taf: Cymmer, Dinas, Llwyncelyn, Mount Pleasant, Porth^, Tonyrefail^*, Tonypandy^*, Trebanog, Trehafod, Ynyshir.
• Torfaen: Griffithstown, New Inn, Pontymoile, Penygarn, Pontypool^, Sebastopol, Trosnant,
• Vale of Glamorgan: Dinas Powys^, Llantwit Major^, Rhoose^, St Athan.

^Local Network Exchange