Tech giant Cisco is offering $1 billion in financing to help cities boost their efforts to become smarter with emerging technology such as the Internet of Things.

Cisco, which operates one of its largest corporate campuses in RTP, announced the new plan Tuesday at the Smart City Expo World Congress in Barcelona.

“The City Infrastructure Financing Acceleration Program (CIFAP) provides financing solutions to cities for smart city deployments,” Cisco explained.

“Funding is a major stumbling block for municipalities that are beginning their smart city transformation,” said Anil Menon Global President for Cisco Smart+Connected Communities. “The City Infrastructure Financing Acceleration Program will make that easier, faster and more affordable. With our partners, Cisco will bring the capital and expertise it takes for more smart city project concepts to become a reality.”

Offerings include, as explained by Cisco:​

Traditional loans and leases.

  • Consumption-based financing. Pay for technology based on usage. Increase or decrease capacity as needed.
  • “As a service” financing. Rather than purchasing technology, consume it as a service.
  • Concession financing. Gain the benefits of technology at little or no cost while getting the incremental revenue or cost savings generated.

For operators of urban services, additional options include:

  • Revenue share financing. Obtain funding for your technology investments in exchange for a share of the revenues from your customer contracts. Revenues may be committed or uncommitted.
  • Equity financing. Scale your business across multiple cities with capital and expertise from a strategic private equity partner.

Cisco Capital is working with private equity firm Digital Alpha Advisors, and pension fund investors APG Asset Management and Whitehelm Capital to provide funding.