MBSB Bank Bhd has entered into a RM400 million structured receivable purchase facility with Huawei Technologies (Malaysia) Sdn Bhd to support the deployment of equipment and services for U Mobile’s 5G Radio Access Network (RAN) in Malaysia. The shariah-compliant financing facility enables Huawei Malaysia to monetise its receivables, improving working capital while supporting the continued rollout of the country’s 5G infrastructure. The transaction represents Huawei Malaysia’s first use of an Islamic structured receivables purchase financing solution and is among MBSB Bank’s largest structured trade and receivables financing transactions.
The financing facility is designed to strengthen the implementation of U Mobile’s 5G Radio Access Network by providing funding for telecommunications equipment and related services. Through the receivables purchase structure, Huawei can accelerate cash flow while supporting the timely deployment of network infrastructure required for Malaysia’s expanding 5G coverage.