UK fiber provider CityFibre has secured £2.3 billion ($3.1bn) in its latest financing round.

The announcement today (July 14) comes after recent reports suggested the company was struggling to secure funding for its full fiber rollout, amid reports that it was in talks with Virgin Media O2 over a potential “rescue deal.”

CityFibre dismissed the reports at the time, calling the speculation “unfounded,” while noting that its shareholders were still committed to the company’s long-term growth ambitions.

Such ambitions include a planned fiber rollout to eight million premises across the UK, with the company currently more than halfway to this total with around 4.3 million premises passed.

The alternative network provider (altnet) has now secured the required funding, of which £500 million ($673m) has come from new equity secured from existing CityFibre shareholders, including Infrastructure at Goldman Sachs Alternatives, Antin Infrastructure Partners, Mubadala Investment Company, and Interogo Holding.

The fiber provider has also agreed to a committed £960m ($1.3bn) expansion of its existing debt facilities. This has been supported by lenders including ABN AMRO, BBVA, Crédit Agricole CIB, ING, Intesa Sanpaolo IMI CIB, Lloyds, the National Wealth Fund, NatWest, SEB, and Société Générale.

According to CityFibre, the facility will support its network investment, enabling the company to connect hundreds of thousands of new customers across its nationwide network.

In addition to this, an accordion facility of £800m ($1bn) is also being made available to drive CityFibre’s expansion through M&A opportunities around fiber network assets.

“This round of financing will supercharge CityFibre’s next phase of growth, as we consolidate the altnet sector, accelerate the pace of customer connections, and unleash the full power of our market-leading 10Gb XGS-PON network, for the benefit of all our partners, their customers, and for the UK economy,” said Greg Mesch, CEO of CityFibre.

“There is a huge opportunity ahead for CityFibre, and it is testament to the success of the company that we have such strong backing from our lenders and shareholders. This multi-billion-pound investment into critical digital infrastructure will deliver significant benefits across the UK, helping to realize potential and unlocking economic growth.”

CityFibre has been pushing to take on the UK’s incumbent fiber providers, Openreach and Virgin Media O2.

Founded in 2011, CityFibre is a fiber-only provider. The company’s network passes more than 4.3 million premises, according to Mesch, which is slightly behind Virgin Media O2’s 6.4 million. Both trail behind Openreach, a subsidiary of BT Group, which has passed around 17 million premises.