U Mobile Secures $1 Billion Financing for 5G Network Expansion in Malaysia

Malaysia’s pursuit of 5G connectivity received a significant boost as U Mobile, the country’s second 5G wholesale operator, announced a landmark financing arrangement to support its ambitious network rollout. The telco has secured a ten-year syndicated financing deal worth MYR 4.3 billion (approximately US$1 billion) through a collaboration with four major Malaysian banks. This monumental step underscores U Mobile’s commitment to driving advanced network infrastructure and fostering Malaysia’s digital economy.

Key Financing Partners and Strategic Objectives

The financing agreement involves prominent financial institutions, with CIMB Investment Bank serving as the sole loan coordinator and a joint mandated lead arranger. Other critical facilitators include CIMB Bank, CIMB Islamic Bank, Maybank Islamic Bank, AmBank Islamic Bank Berhad, and UOB Malaysia, each contributing as joint mandated lead arrangers and financiers. This synergy is a testament to the confidence Malaysia’s banking sector has in U Mobile’s vision.

The allocated funds are primarily directed toward the capital expenditure (capex) for extending U Mobile’s next-generation 5G network. Additionally, the financing will provide the telecom operator with ample working capital to accelerate initiatives, including the expansion of its recently launched ULTRA5G service. This comprehensive approach ensures that U Mobile is not only pursuing nationwide 5G coverage but also solidifying its leadership in innovative telecom solutions.

Commitment to Accelerating 5G Deployment

U Mobile’s Chief Executive Officer, Wong Heang Tuck, highlighted the significance of this financing arrangement, emphasizing that the deal reflects the banking sector’s trust in the company’s strategic direction and growth potential. “This new facility reinforces our commitment to advancing Malaysia’s digital economy and achieving our network deployment objectives,” Wong stated. According to the CEO, the progress of their 5G rollout is ahead of schedule, with a concrete goal to achieve 80% coverage of populated areas by July 2026.

Wong further noted that the agreement bolsters U Mobile’s ability to scale its infrastructure and meet the increasing demand for high-speed connectivity across Malaysia. As network infrastructure evolves to support emerging technologies, U Mobile’s expanded presence underscores a commitment to bridging the digital divide and driving economic growth through enhanced digital access.

Impact on Malaysia’s Digital Future

The launch of ULTRA5G earlier this year marked a pivotal moment in U Mobile’s journey, heralding advanced services designed to meet the connectivity needs of industries and consumers alike. With this new financing in place, the company can further enhance its offerings, enabling businesses to adopt next-generation applications such as IoT, AI, and cloud-based technologies.

Malaysia’s drive toward widespread 5G adoption aligns with broader regional and global trends in the telecom industry. U Mobile’s aggressive rollout of ULTRA5G positions the operator as a key player in the nation’s digital transformation story, contributing not only to improved connectivity but also to economic competitiveness in an increasingly digital-first world.