The Scottish National Investment Bank has also invested £10m in the scheme, which aims to connect 150 small towns and villages over the next year. 

Deputy First Minister Kate Forbes has praised the deal as a ‘significant success story’.

The Skye, Lochaber and Badenoch MSP, who announced plans to step away from Holyrood last week, noted: “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. 

“I am delighted to see substantial new investment flowing into the company and the rural communities it serves, including a further £10 million from the Scottish National Investment Bank (SNIB).

“This takes the Bank’s total investment to £60 million, which has helped Highland Broadband raise an additional £40 million of private capital.”

Brad Bauman, Head of Alternative Credit at AlphaReal, said: 

“We are delighted to provide this initial facility to Highland Broadband. We have extensive experience in providing bespoke lending solutions across the debt spectrum, and as we expand into digital infrastructure, we look forward to working with Gavin and his team at Highland Broadband.”

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Gavin Rodgers, CEO of Highland Broadband, added: “This injection of £50 million of new capital means we have the funding as well as the capability to continue network expansion throughout rural Scotland. 

“We are delighted to secure the backing of AlphaReal as a new funder and also welcome the ongoing support of the Scottish National Investment Bank.”

The firm previously received £50m from SNIB between 2021 and 2024, which financed the building of networks in East Lothian, Stirlingshire, Fife, and the Highlands. 

Connection speeds in one small town increased by 3000% after the company installed a fibre optic network. 

Internet connections in the village of Halkirk, located six miles south of Thurso, rose from speeds of 2.8 Mbps, the slowest in the UK, to 8,000 Mbps.