DNB no longer needs government support after RM5.2 billion refinancing
The government is leaving as an ordinary shareholder but will keep a special share to protect national interests and oversee strategic matters.
The government’s financial obligations linked to Digital Nasional Bhd (DNB) stood at nil as of end-September after the company completed RM5.2 billion in syndicated Islamic term financing, Communications Minister Datuk Seri Fahmi Fadzil said.
Speaking to reporters on Oct 19 after DNB exchanged documents with its lenders, Fahmi said the 5G infrastructure company no longer needed government support. He also ruled out further state backing.
Five financial institutions provided the financing, replacing a revolving credit facility backed by a government guarantee that had expired. The new facility provides longer-term funding for operations and network development.
DNB is preparing for equal ownership by its three mobile network operator shareholders: CelcomDigi Bhd, Maxis Bhd and YTL Power International Bhd. The government will cease to be an ordinary shareholder while retaining a special share.
Chief executive officer Datuk Azman Ismail said the financing, recent spectrum assignments and ownership transition would support operations within Malaysia’s dual 5G network framework. Revenue under existing access agreements with telecommunications operators would support debt servicing, he said, with increased 5G usage generating more income.
Azman said DNB would place greater emphasis on business and industrial users as consumer adoption advanced. Fahmi separately urged the company to step up efforts to promote its infrastructure to multinational corporations, particularly for secure, reliable connectivity amid geopolitical uncertainties.
