OCK Group secures US$48.4mil syndicated loan

KUALA LUMPUR: Telecommunication network solutions provider OCK Group Bhd (OCK) has secured a US$48.4 million (US$1=RM4.37) syndicated loan with OCBC Bank (M) Bhd (OCBC Malaysia).

OCBC Malaysia is the sole bookrunner and joint mandated lead arranger together with United Overseas Bank (M) Bhd (UOB Malaysia).

In a statement today, OCK said the syndicated loan will be consolidated from OCK Yangon Private Ltd in Myanmar back to OCK in Malaysia.

"Proceeds from the refinancing will be used to partly repay the outstanding balance of the original syndicated loan of US$30.4 million which would benefit OCK through the optimisation of the financing structure.

"The remaining US$18.0 million will be dedicated to completing the construction of 150 telecommunication towers in Myanmar which are currently in the order book," the group added.

The financing agreement was signed on March 28, 2022.

OCK group managing director Sam Ooi Chin Khoon said the decision to undertake this refinancing exercise is in line with the group’s ongoing initiative to continue to review and enhance financial management to ensure it optimises its capital structure and financial metrics.

"The support received from OCBC Malaysia and UOB Malaysia reaffirms their confidence and outlook in OCK’s tower company (towerco) assets.

"We remain confident of OCK towerco business outlook in Myanmar, as we expect to see an increased flow of long-term recurring income with further upsides from co-sharing opportunities for our telecommunication towers,” he said.

Moving forward, Ooi said, the group believes the opportunity for growth in the telecommunication space remains robust. - Bernama