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DNB Secures $1.27 Billion Islamic Facility for Malaysia 5G Network

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DNB Secures $1.27 Billion Islamic Facility for Malaysia 5G Network

Digital Nasional Berhad secured MYR 5.2 billion ($1.27 billion) in syndicated Islamic term financing. The facility funds the next stage of Malaysia’s national 5G deployment.

The package refinances an existing Government Guarantee Revolving Credit Facility that expired on September 29, 2026. This shifts the wholesale operator away from direct sovereign debt backing.

Maybank Investment Bank led the syndicate as mandated lead arranger, bookrunner, and coordinator. Joint mandated lead arrangers were AmInvestment Bank, CIMB Islamic Bank, RHB Islamic Bank, and United Overseas Bank (Malaysia). AmInvestment Bank also served as financial adviser to DNB.

This long-term package ranks among the largest syndicated debt deals arranged for an unlisted Malaysian business. It provides independent capital to maintain infrastructure operations as the country prepares to licence a competing second 5G wholesale network.

Proceeds prepare the ground for the Ministry of Finance Incorporated to surrender its ordinary equity. MOF Inc. Holds a 31.18 percent stake in DNB and plans to exit early in the fourth quarter of 2026. It will keep a special share to retain veto power over strategic national decisions.

Three commercial mobile network operators, CelcomDigi, Maxis, and YTL Communications, each hold 22.94 percent stakes after injecting MYR 202 million ($49.45 million) apiece in May. Once the finance ministry transfers its ordinary holding, those three carriers will become equal shareholders in the business.

For enterprise customers and mobile subscribers, private ownership removes the risk of sudden policy reversals tied to government budgets. Joint control forces the three competing retail operators to fund capital expenditure directly rather than rely on state guarantees.


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