KUALA LUMPUR, 28 OCTOBER 2021 – UOB Malaysia today announced that the Bank has provided a first tranche financing in the form of an RM800 million Receivables Purchase Arrangement (RPA) to Ericsson (Malaysia) Sdn Bhd (Ericsson Malaysia). This will enable Ericsson Malaysia to deliver the initial phases of Digital Nasional Berhad (DNB)’s nationwide 5G network rollout.
Additionally, UOB Malaysia has also been mandated as the Lead Arranger for an additional RM2.3 billion syndicated RPA for potential financial institutions (FIs). Upon acceptance of the syndicated RPA by the participating FIs, a total of RM3.1 billion will be raised in support of the supply, delivery and management of DNB’s entire 5G network.
DNB, an entity wholly owned by the Minister of Finance (Incorporated), has been mandated to be the single neutral party to undertake the accelerated deployment of 5G infrastructure and network nationwide. It is licensed under the Communications and Multimedia Act 1998 to provide wholesale 5G coverage and capacity to licensees under the Act.
Ms Ng Wei Wei, Deputy Chief Executive Officer, UOB Malaysia, said, “We are honoured to be appointed by Ericsson Malaysia to first-finance and to lead-arrange this landmark financial arrangement. We are optimistic in DNB’s 5G network rollout strategy, as we share a common belief that this milestone project will have a long-term positive economic impact on the country.
“The financial arrangement will enable Ericsson Malaysia to meet its contractual obligation and to support DNB’s mandate to build, to own and to operate the national 5G network. This initiative has been identified as a key catalyst for Malaysia’s digital economy aspirations. The financing is also testament to UOB’s expertise in structuring complex financing of such size for infrastructure projects.”
As part of the agreement to supply, to deliver and to manage DNB’s 5G network and based on its experience of raising funds for infrastructure projects in other markets, Ericsson Malaysia is helping to arrange the financing of network equipment from foreign and domestic financial institutions.