Malaysia’s DNB secures $1.27 billion for next phase of 5G rollout

DNB arranges RM5.2 billion Islamic financing

Malaysia’s Digital Nasional Berhad (DNB) has secured 5.2 billion Malaysian ringgit (US$1.27 billion) through syndicated Islamic term financing to support the next phase of the country’s 5G rollout.

DNB announced the agreement last week, describing it as one of the largest syndicated loan facilities ever arranged for an unlisted company in Malaysia.

Maybank Investment Bank Berhad served as mandated lead arranger, bookrunner, and coordinating arranger. AmInvestment Bank Berhad, CIMB Islamic Bank Berhad, RHB Islamic Bank Berhad, and United Overseas Bank (Malaysia) Berhad acted as joint mandated lead arrangers. AmInvestment Bank Berhad also served as DNB’s financial advisor.

Ownership and network expansion

DNB was established in 2021 by several Malaysian network operators as part of an effort to provide nationwide 5G coverage.

CelcomDigi, Maxis, and YTL Communications each hold a 22.94 percent stake in DNB. Malaysia’s Ministry of Finance Inc (MOF) owns the remaining 31.18 percent. MOF plans to eventually exit the shared infrastructure agreement, but will retain a special share in DNB to safeguard national interests.

The financing was completed after DNB activated the full 100MHz of the 3.3-3.4GHz “F0” spectrum and converted its entire 240MHz spectrum holding to a Spectrum Assignment.

The 240MHz allocation is intended to increase network capacity, efficiency, and performance, supporting faster speeds, lower latency, and improved customer experience. It will also support technologies such as Massive MIMO, carrier aggregation, 5G Advanced, and AI-driven network capabilities.

DNB CEO Datuk Azman Ismail said the RM5.2 billion financing provides the company with a platform to operate independently, continue network enhancement and capacity expansion, and make use of its expanded spectrum assets.

He also said that, as Malaysia progresses under a dual network framework, DNB will continue providing digital infrastructure for shareholders, customers, enterprises, and government agencies. The company intends to support the government’s AI Nation goals and Malaysia’s next phase of digital growth.

Malaysia’s dual-network framework

DNB’s network has faced scrutiny from Prime Minister Anwar Ibrahim’s administration over claims involving transparency. The administration subsequently reviewed DNB’s plan for a state-owned 5G network.

DNB had originally stated that it would operate Malaysia’s only 5G network. A second network has since been launched by U Mobile.

DNB was created under former Prime Minister Muhyiddin Yassin in 2021, with the objective of establishing a state-owned 5G agency that would hold the country’s full 5G spectrum while multiple carriers used its services.

U Mobile sold its stake in DNB last year to pursue its own 5G network. It sold 33,333 shares each to CelcomDigi, Maxis, and YTL Communications.

Telekom Malaysia separately announced a three-year wholesale agreement with U Mobile under which TM will offer 5G services through U Mobile. Telekom Malaysia left the DNB agreement in 2024.