The bank originally provided cornerstone funding of £20m to Lothian Broadband Networks (LBN) in 2021. LBN will use the additional funding to complete this phase of expansion by the end of 2024.

Gavin Rodgers, CEO of LBN, said: “This new funding from the Bank takes our overall investment capacity for the year ahead up to £50m.

“This further support from the Bank highlights our effectiveness at working with our partners in government and local communities to transform connectivity in rural Scotland.”

The funding support will help develop a rural digital economy by increasing connectivity in areas of Scotland that would be unlikely to get access to a gigabit capable network.

LBN is currently building full-fibre XGS-PON networks throughout the Highlands, East Lothian and Fife.

So far over 10,000 premises throughout rural Scotland have access to the state-of-the-art broadband.

The technology being installed has the capability to support up to 10Gb symmetrical connectivity, currently the fastest and most reliable network being built anywhere in the UK.

Residents in these areas can purchase competitively priced packages with speeds of up to 2Gbps through LBN’s retail brands Lothian Broadband and Highland Broadband.

Nicola Douglas, executive director at the bank, said: “Ultrafast broadband has a transforming impact, boosting economic growth, reducing inequalities, and helping education.

“Our investment in LBN is already making a difference for both rural businesses and homes and by supporting this state-of-the-art fibre roll out we are future proofing the network.”

One of the bank’s key missions is to extend the equality of opportunity by improving places and this investment will help increase digital connectivity to under serviced communities.

A vibrant rural digital economy and increased connectivity can also help reduce car journeys by allowing people to work from home and assist a just transition to net zero by 2045.

The bank’s investment also supports the UK and Scottish government commitments to high-speed broadband access. The UK government has a target of at least 85% of the population having access to gigabit (1,000 Mbps) broadband by 2025 under its National Infrastructure Strategy.