Malaysian telco U Mobile announced on Wednesday it has signed a Memorandum of Understanding (MoU) with CIMB Bank to extend financing support for its upcoming 5G network rollout.
Neither U Mobile nor CIMB said how much the deal was worth. However, both companies have has an ongoing financing partnership for some time. In 2021, CIMB participated in a RM1.2 billion (US$266.2 million) facility to U Mobile, which was upsized to RM1.4 billion in 2023.
U Mobile CEO Wong Heang Tuck said CIMB’s financial backing “will further strengthen U Mobile’s ability to ensure a rapid and cost efficient second 5G network rollout that will bring benefits to enterprises, consumers and the public sector.”
Chu Kok Wei, CEO of group wholesale banking at CIMB Group said the bank is “ready to offer a holistic range of bespoke products and services apart from financing, extending to diverse areas including investment banking and treasury that will spark further innovation and accelerate growth both for U Mobile and Malaysia.”
Shortly after U Mobile won approval from the Malaysian Communications and Multimedia Commission (MCMC) last November to become the country’s second 5G operator, it said that it had “robust financial backing from its shareholders, financial institutions such as UOB, CIMB and AmBank, as well as strategic vendor partners” to build the network.
In July 2024, U Mobile signed an MoU with AmBank Group, who will provide financing solutions to cover the cost of rolling out the second 5G network.
