DNB completes RM5.2bil financing to support next phase of 5G growth


KUALA LUMPUR: Digital Nasional Bhd (DNB) has completed a RM5.2bil syndicated Islamic term financing, strengthening its long-term funding position as Malaysia moves into the next phase of its dual 5G network framework.

In a statement, DNB said the financing will facilitate the planned exit of Minister of Finance Inc (MOF Inc) as an ordinary shareholder and the transition to equal ownership among its mobile network operator shareholders, namely CelcomDigi Bhd, Maxis Broadband Sdn Bhd and YTL Power International Bhd.

The ownership transition is expected in the early fourth quarter of 2026, while MOF Inc will retain a special share in DNB to safeguard national interests.

The syndicated financing also includes the refinancing of DNB's government-guaranteed revolving credit facility, which expired on Sept 29, and establishes a longer-term funding structure to support the company's growth.

DNB said the completion of the financing coincided with the award of the full 100 MHz of the 3.3–3.4 GHz spectrum and the conversion of its entire 240 MHz spectrum holding to a spectrum assignment.

The assignment by the Malaysian Communications and Multimedia Commission (MCMC) takes effect from Oct 1.

DNB said the 240 MHz spectrum block would enhance network capacity, efficiency and performance and support technologies including Massive MIMO, carrier aggregation, 5G Advanced and artificial intelligence-driven network capabilities.

Chief executive officer Datuk Azman Ismail said the financing would provide DNB with a sustainable platform to operate independently while continuing to invest in network enhancement and capacity expansion.

“The successful completion of this RM5.2bil financing exercise marks a significant milestone for DNB and reflects strong confidence in our business fundamentals, operational track record and long-term role in Malaysia’s digital economy,” he said.

Maybank Investment Bank Bhd acted as mandated lead arranger, bookrunner and coordinating arranger for the financing.

AmInvestment Bank Bhd, CIMB Islamic Bank Bhd, RHB Islamic Bank Bhd and United Overseas Bank (Malaysia) Bhd were joint mandated lead arrangers, while AmInvestment Bank was DNB's financial adviser.

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