Malaysian telco U Mobile announced on Friday it has appointed CIMB Bank to facilitate and arrange financing of up to MYR4 billion (almost US$940 million) to support the nationwide deployment of its 5G network infrastructure.
As part of the arrangement, CIMB – which will serve as U Mobile’s loan coordinator and mandated lead arranger – intends to participate in the financing of at least MYR1.5 billion, with the balance to be syndicated among other financial institutions.
The financing will fund U Mobile’s capex to accelerate the rollout of its 5G network, which aims to achieve 80% coverage of populated areas by July 2026.
The deal follows an MoU signed by both companies in January 2025 to find ways to finance U Mobile’s 5G network rollout. No financial details were revealed at the time.
U Mobile and CIMB 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 raised to RM1.4 billion in 2023.
“Partnering with a strong financial institution like CIMB demonstrates our ability in executing our capex programme efficiently,” said U Mobile CEO Wong Heang Tuck in a statement. “Their confidence in our financial discipline and growth trajectory reinforces our ability to deliver an enterprise-grade 5G network that is fast, scalable, and impactful for both businesses and consumers.”
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 5G network.
