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

The financing agreement was announced last week by DNB, which said the package is one of the largest syndicated loan facilities ever arranged for an unlisted company in the country.

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

DNB was set up in 2021 by a number of Malaysian network operators as part of an effort to launch nationwide coverage of 5G.

Five years later, CelcomDigi, Maxis, and YTL Communications each hold a 22.94 percent stake in DNB, while the rest (31.18 percent) is owned by Malaysia's Ministry of Finance Inc (MOF), which eventually has plans to exit the shared infrastructure agreement, though will "retain a special share in DNB to safeguard national interests."

Completion of the latest financing comes as DNB recently activated the full 100MHz of the 3.3 – 3.4GHz (“F0”) spectrum and the conversion of DNB’s entire 240MHz spectrum holding to a Spectrum Assignment.

The 240MHz band is tipped to "enhance network capacity, efficiency and performance, enabling faster speeds, lower latency and improved customer experience."

This spectrum is also set to support the deployment of advanced technologies, including Massive MIMO, carrier aggregation, 5G Advanced, and AI-driven network capabilities.

“The successful completion of this RM5.2 billion financing exercise marks a significant milestone for DNB and reflects strong confidence in our business fundamentals, operational track record, and long-term role in Malaysia’s digital economy. This financing provides DNB with a sustainable platform to operate on its own, continue investing in network enhancement and capacity expansion, and leverage our expanded spectrum assets," said Datuk Azman Ismail, CEO, DNB.

“As Malaysia progresses under the dual network framework, DNB remains committed to providing world-class digital infrastructure that supports our shareholders, customers, enterprises and government agencies. With strong financing, enhanced spectrum resources and a proven nationwide 5G platform, DNB is well positioned to support the government’s AI Nation aspirations and help power Malaysia’s next phase of digital growth.”

DNB has seen its network heavily scrutinized by Prime Minister Anwar Ibrahim's administration over claims of transparency issues.

This led Ibrahim's administration to review DNB's plan for a state-owned 5G network, with DNB quite clear that it was to be the only 5G network in the country, though a second network has since been launched by U Mobile.

DNB was created under the leadership of former PM Muhyiddin Yassin back in 2021, with the goal of establishing a state-owned 5G agency that would own the full 5G spectrum, with several carriers using the services.

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

Another telco, Telekom Malaysia, has separately announced a three-year wholesale agreement with U Mobile that will see TM offer 5G services via U Mobile instead. The carrier dropped out of the DNB agreement in 2024.