U Mobile has appointed CIMB as its Loan Coordinator and Mandated Lead Arranger to secure financing of up to RM4 billion to support the nationwide rollout of its 5G network infrastructure. The funds raised will be used to finance capital expenditure aimed at accelerating network deployment, with a target of reaching 80% coverage of populated areas by July 2026.
CIMB, through its Group Wholesale Banking division, has committed to participating in the financing with at least RM1.5 billion, while the remainder will be syndicated with other financial institutions. According to the bank’s Group Wholesale Banking CEO Chu Kok Wei, the partnership is aligned with Malaysia’s goals to expand digital access and inclusion, as well as advancing its role in the region’s digital economy. He noted that CIMB’s expertise and established networks would be leveraged to ensure the project’s successful execution.
Meanwhile, U Mobile CEO Wong Heang Tuck highlighted that partnering with a major financial institution like CIMB not only supports U Mobile’s growth plans but also underlines the company’s financial credibility and operational discipline. He emphasised that the support would help deliver a 5G network that is robust and enterprise-grade in both performance and reach.
This recent development follows the MOU which both U Mobile and CIMB had signed earlier this year. Even prior to that, the bank had also collaborated with the telco back in 2021 by providing it with a financial facility of RM1.2 billion, which was later upsized to RM1.4 billion in 2023.
(Source: U Mobile press release)
