KUALA LUMPUR, Nov 12 — Digital Nasional Berhad (DNB) said that it has secured a working capital financing package worth RM400 million from Deutsche Bank (Malaysia) Berhad.
It said that the package consists of a RM150 million bank guarantee line and a RM250 million revolving credit facility, to be extended by Deutsche Bank on an unsecured basis.
DNB Chief Financial Officer Nik Azlan Aziz said the credit facility will be utilised for working capital, mainly on daily operations and capital expenditures.
“We are pleased to have closed DNB’s first working capital facilities with Deutsche Bank. This is the first of several similar facilities that we are arranging.
“Conversations with the private sector have been promising, and banks have been supportive. The close of the RM400 million facility with Deutsche Bank is testament to this,” he said in a statement today.
He added that the RM400 million financing package is part of the estimated RM5 billion total working capital facility that DNB will require between now and 2024, in order to roll out the planned 5G network.
Nik Azlan said that the working capital facility will be refinanced via a long-term sukuk programme, to commence in 2022.
DNB also added that it has previously secured a loan worth RM800 million from United Overseas Bank to finance its first tranche with Ericsson (Malaysia) Sdn Bhd in the form of receivables purchase arrangement.
It said that Ericsson Malaysia will deliver the initial phases of DNB's nationwide 5G network rollout.
Yesterday, national news agency Bernama reported that users are not expected to have to pay high costs to gain access to 5G services as the government has taken the matter into account before the rollout.
Communications and Multimedia Minister Tan Sri Annuar Musa said that through DNB, the agency implementing the network, the cost for the facility should not be a burden for consumers.