United Overseas Bank (M) Bhd (UOB Malaysia) has provided Ericsson (M) Sdn Bhd (Ericsson Malaysia) a first tranche financing in the form of an RM800 million receivables purchase agreement (RPA) to fund Digital Nasional Bhd’s (DNB) initial phase of 5G network deployment in Malaysia. In addition, UOB Malaysia will act as the lead arranger for an RM2.3 billion syndicated RPA for potential financial institutions.
Following the participating financial institutions’ acceptance of the syndicated RPA, a total financing of RM3.1 billion will be extended to fund the complete 5G network supply, delivery, and management.
The National 5G Network is being developed as a part of the MyDigital programme, which aims to expand and strengthen Malaysia’s digital economy by 2030, and is in line with the government’s goal of transforming the country into a digitally-driven, high-income economy. Over the next ten years, the deployment of the 5G network and infrastructure is estimated to generate RM100 billion in gross domestic product (GDP).