U Mobile, a key player in Malaysia’s telecom industry, has taken a significant step towards advancing its 5G infrastructure. It has appointed CIMB Bank as the lead arranger and loan coordinator for a financial facilitation of RM4 billion, roughly $940 million. This financing will accelerate the deployment of U Mobile’s 5G network, targeting 80% coverage across populated areas by July 2026.
The appointed bank, CIMB Bank, will contribute RM1.5 billion directly. The remaining amount will be syndicated with other local financial institutions. This considerable financial backing will support U Mobile’s capital expenditure, bolstering their strategy to expand 5G connectivity in Malaysia.
Historically, CIMB and U Mobile have shared a robust financing relationship, with CIMB having been involved in multiple funding arrangements since 2021. From an initial RM1.2 billion facility in 2021, which increased to RM1.4 billion in 2023, the partnership has consistently grown stronger.
Wong Heang Tuck, Chairman of U Mobile, stated, “Partnering with a strong financial institution like CIMB demonstrates our ability in executing our capex program efficiently. 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.”
Moreover, U Mobile has chosen Telekom Malaysia as its fiber backhaul partner. This collaboration aims to streamline the adoption of 5G, leveraging Telekom Malaysia’s extensive suite of backhaul infrastructure services.
Governmental shifts have also favored U Mobile. Malaysian authorities granted them the go-ahead to deploy a second 5G network, emphasizing the transition to a dual network system. This change followed DNB achieving 80% coverage by December 2023, revoking earlier directions that had designated DNB as the solitary figure in Malaysia’s 5G deployment landscape.
