Rural businesses will be among the beneficiaries of a £50 million investment in Highland Broadband’s ultra-fast broadband network.

Deputy First Minister Kate Forbes unveiled the new capital secured by the Edinburgh and Inverness based company which has already connected around half of all the rural premises throughout the Highlands to full fibre infrastructure.

The new funding includes £40m from Alpha Real Capital with the other £10m from Scottish National Investment Bank (SNIB).

The new funding ensures that Highland Broadband remains on track to extend its reach to more than 150 towns and villages.

Ms Forbes said: “This is a significant success story for Scotland. The roll-out of Highland Broadband’s network has made a real difference to people and businesses in rural areas, supporting jobs and boosting economic growth.”

Gavin Rodgers, CEO of Highland Broadband, added: “Raising this capital ahead of a series of important projects means we can focus on operational delivery rather than sourcing further finance.”

Brad Bauman, Head of Alternative Credit at Alpha Real, said: “The highly differentiated business model, quality of the platform and the experienced management team attracted us to provide this funding for digital infrastructure in rural Scottish communities.”

SNIB executive Andy Clapp said: “Highland Broadband has moved from strength to strength, while delivering tangible benefits to rural communities in Scotland.”

GoFibre project win for north east Scotland

Altnet GoFibre last month secured another Project Gigabit contract to reach around 63,000 premises, backed by £105m of government money.

The tender will see GoFibre build its network in North East Scotland, including parts of Aberdeen City, Aberdeenshire, Angus, Dundee, Highland, Moray, and Perth and Kinross.

GoFibre said it has begun a survey to establish the precise premises it will cover from a list of locations identified as within the project’s scope.

The Scottish government said the altnet will deliver the first connections by summer 2026.

The deal has an average cost per premises covered of around £1,667 — below the Project Gigabit average of approximately £1,895.

This second Scottish win for GoFibre is the third Project Gigabit deal announced for Scotland, with its two deals sandwiching a £157m contract handed to Openreach that will pass 65,000 premises in areas including the Inner and Outer Hebrides and the Highlands.

UPDATE 18 AUGUST: The contract was extended to £125m to include the Borders and backed by a £45m debt facility from the Scottish National Investment Bank alongside a further £80m from Hamburg Commercial Bank (HCOB). GoFibre was advised by Deloitte on the transaction.