Netcity Telecom has secured an additional €10 million to continue developing the fibre-optic network in the Romanian capital, Bucharest.
Business Review reports that the funds have come in the form of a new loan from the Romanian Commercial Bank and BRD Groupe Societe General. They are in addition to a loan facility of €36 million that the company already has.
The funds will be used to supplement over €20 million provided by shareholders to expand the underground fibre-optic infrastructure over the next three years.
By 2020, Netcity Telecom will have obtained over €70 million in private investment and doubled the length of the network to over 1,800km. The network will then continue to grow further, depending on the city’s needs.
Netcity Telecom holds a 49-year concession with Bucharest City Hall, to which it pays an annual royalty equivalent to 12% of its revenues.
