Funding to drive next-generation network expansion, strengthen enterprise-grade 5G capabilities and support rapid nationwide rollout.
KUALA LUMPUR: U Mobile Sdn Bhd has signed a RM4.3 billion syndicated financing facility with five banks to support the deployment of its next-generation 5G network and accelerate the nationwide expansion of its ULTRA5G experience.
It said the deal positions the company among the largest recipients of ringgit-denominated syndicated financing for an unlisted entity.
CIMB Investment Bank Bhd acted as the sole loan coordinator and lead arranger, with CIMB Bank Bhd, CIMB Islamic Bank Bhd, Maybank Islamic Bank Bhd, AmBank Islamic Bank Bhd and UOB Malaysia also providing financing.
In a statement today, U Mobile chief executive officer Wong Heang Tuck said that the company is ahead in terms of its network rollout targets.
He said U Mobile’s 5G deployment across Malaysia started in the middle of this year.
“This new facility will further accelerate our rollout ambitions and reinforce our commitment to drive Malaysia’s digital economy,” he said.
Wong elaborated that the financing will mainly fund U Mobile’s capital expenditure (CAPEX) and working capital for the rollout of U Mobile’s next-generation 5G network deployment, aiming to achieve 80 per cent coverage of populated areas (CoPA) by the second half of 2026.
“The funding will also accelerate the expansion of U Mobile’s ULTRA5G experience nationwide, a key catalyst in advancing Malaysia’s digital economy,” he said
Communications Minister Datuk Fahmi Fadzil has set a target for U Mobile to achieve 80 per cent 5G coverage in populated areas within the first year of operation and 95 per cent by the third year as per the company’s detailed business plan (DBP) for leading Malaysia’s second 5G network.
In a written reply on the Parliament website on Nov 12, the Communications Ministry said that U Mobile has upgraded 2,976 sites to 5G, bringing its 5G coverage in populated areas to 58.2 per cent as of Oct 31 this year.
“Additionally, 11 buildings have been equipped with 5G infrastructure, and these sites will become operational in stages according to the implementation schedule, reflecting an active rollout phase in the national 5G network expansion,” the ministry added. – Bernama
