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.
Refinancing state debt
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.
Ownership changes among carriers
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.
Commercial impact and competitive risk
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.
Commercial risk now shifts to network economics under Malaysia’s planned dual-network structure. When the telecommunications regulator awards the second 5G network, DNB must defend its wholesale traffic volumes against a rival system. The debt facility secures critical operating runway for that contest.
Spectrum boost and network specs
DNB expanded its active spectrum assets alongside the financing deal. The carrier activated an extra 100 MHz in the 3.3 GHz to 3.4 GHz band. Paired with its original 3.4 GHz to 3.5 GHz assignment, it now has 200 MHz of contiguous mid-band spectrum.
All 240 MHz of DNB’s spectrum holdings converted into formal spectrum assignments on October 1, 2026, following approval from the Malaysian Communications and Multimedia Commission. The operator will direct the additional capacity into Massive MIMO, carrier aggregation, 5G-Advanced, and automated traffic management across metropolitan nodes.
What happens next
Next up is the formal completion of MOF Inc.’s equity exit before the end of the fourth quarter of 2026. Attention will then turn to how CelcomDigi, Maxis, and YTL Communications balance their board representation and whether any of the three seek access to Malaysia’s second 5G consortium.
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