DNB Raises $1.27B As Malaysia Reworks 5G Network Ownership

Light Reading reports that Digital Nasional Berhad has raised 5.2 billion Malaysian ringgit, or about $1.27 billion, in syndicated Islamic term financing, giving one of Malaysia’s wholesale 5G network operators a longer funding runway as the country moves toward a dual-network model.

The financing is not a routine balance-sheet update.

It refinances DNB’s Government Guarantee Revolving Credit Facility, which was due to expire on September 29, 2026, and replaces that short-term structure with long-term funding for network enhancement, capacity expansion and future growth.

The transaction also ranks among the largest syndicated loan facilities arranged for an unlisted Malaysian company.

The lender group shows how central the 5G transition has become to Malaysia’s infrastructure market.

Maybank Investment Bank served as mandated lead arranger, bookrunner and coordinator.

Four other banks took lead-arranger roles: AmInvestment Bank Berhad, CIMB Islamic Bank, RHB Islamic Bank and United Overseas Bank (Malaysia).

AmInvestment Bank also advised DNB on the financing.

DNB chief executive Azman Ismail framed the MYR5.2 billion facility as a signal of confidence in the company’s operating record and role in Malaysia’s digital economy.

The company also linked the financing to its ability to operate independently, continue network investment and use expanded spectrum assets as demand grows.

The ownership shift is the other side of the deal.

The new loan is expected to help Malaysia’s Ministry of Finance Inc. exit DNB as an ordinary shareholder, while the government keeps a special share to protect national interests and retain stewardship over strategic matters.

MOF currently holds 31.18% of the company.

CelcomDigi, Maxis and YTL Communications each hold 22.94% after injecting an additional MYR202 million, or about $49.45 million, in May to support 5G operations and spectrum acquisition.

Those three operators are expected to take equal ownership of DNB in early Q4 2026 after MOF’s planned departure, tightening the link between the wholesale network operator and the carriers using its capacity.

That structure matters because Malaysia’s 5G policy has been moving away from a single state-backed wholesale framework and toward a dual-network system.

DNB remains one of the infrastructure operators at the center of that transition, so its ability to refinance government-backed credit and stand on a more independent funding base affects how carriers plan capacity purchases, spectrum use and network upgrades.

The funding arrives as DNB’s spectrum position expands.

Three months ago, the company activated another 100MHz of 5G spectrum in the 3.3GHz to 3.4GHz band.

Combined with its existing 3.4GHz to 3.5GHz spectrum, that move doubled 5G network capacity to 200MHz of contiguous midband spectrum.

Malaysia’s communications regulator has also converted all 240MHz of DNB’s spectrum holdings into a spectrum assignment, effective October 1, 2026.

DNB tied the larger block to capacity, efficiency and performance gains, with the spectrum base also supporting AI-driven network functions, 5G Advanced features, Massive MIMO and carrier aggregation.

The capacity claims remain tied to DNB’s own statement, but the operating sequence is concrete: refinancing first, shareholder transition next, and spectrum assignment taking effect at the start of October 2026.

Together, those steps define the infrastructure base that Malaysia’s operators will depend on as the next phase of 5G growth moves from financing to deployment.

The next test is execution rather than access to capital.

DNB now has a refinanced debt structure, broader spectrum rights and a planned shareholder transition; turning those pieces into network performance will determine how much Malaysia’s second-phase 5G model changes service capacity for operators and users.