UK alternative network provider (altnet) CityFibre is nearing an agreement to secure £2 billion ($2.73bn) in funding to ensure the company continues to operate and is able to meet its fiber rollout targets.

As reported by Bloomberg this week, the company has secured roughly £500 million ($586m) in equity from existing investors and lenders, while a new “accordion” facility will enable CityFibre to tap an additional £500m under certain conditions.

Sources told Bloomberg that the remaining funds include around £1 billion ($1.36bn) in debt.

CityFibre’s funding is due to run out soon, with bosses at the company, the UK’s largest altnet, warning last year that funding would run out in mid-2025 “in all scenarios.”

The company’s fiber network passes more than 4.3 million premises, but CityFibre has plans to reach up to eight million UK premises by the end of this year, though this target looks likely to be missed.

Earlier this month, it was reported that CityFibre had held talks with Virgin Media O2 over a potential “rescue deal” to support its fiber build-out.

CityFibre flat out dismissed those reports as “unfounded.”

“CityFibre is in a strong position and we expect to announce details of our financing shortly, supporting our role in consolidating the sector and accelerating CityFibre’s next phase of growth,” said a CityFibre spokesperson at the time.

“All shareholders remain committed to CityFibre’s long-term success and are actively engaged in supporting the company’s next phase of growth.”

Founded in 2011, CityFibre is a fiber-only provider. The company competes with BT Group subsidiary Openreach and Virgin Media O2.

Speaking last year, CityFibre CEO Greg Mesch declared that CityFibre would continue to challenge Openreach and Virgin Media’s dominance in the market.

“We are the true challenger. The altnets are the true challenger, they spark this industry,” said Mesch last September.

“It’s not regulation that made Openreach invest like crazy, it’s fear. They were scared to death that CityFibre was going to roll out fast, it’s the same for Virgin. They’re [Virgin Media O2] investing because they’re scared we’re going to roll out our network across their path, and we’re going to provide better service.”