DNB closes MYR5.2bn Islamic financing ahead of MOF Inc exit

Digital Nasional Berhad (DNB) has completed a MYR5.2 billion (US$1.3 billion) Syndicated Islamic Term Financing, a deal the operator described as one of the largest syndicated loan facilities ever arranged for an unlisted company in Malaysia. The transaction closes a funding gap and clears the path for the Ministry of Finance's shareholder exit in early Q4 2026.

Maybank Investment Bank acted as mandated lead arranger, bookrunner and coordinating arranger. AmInvestment Bank, CIMB Islamic Bank, RHB Islamic Bank and United Overseas Bank (Malaysia) served as joint mandated lead arrangers. AmInvestment Bank also held the financial adviser role for DNB.

The package includes refinancing of DNB's Government Guarantee Revolving Credit Facility, which expired on 29 September 2026. DNB said the new structure provides sustainable long-term funding for future growth.

What does the deal change for shareholders?

The financing paves the way for MOF Inc. to exit as an ordinary shareholder, expected in early Q4 2026. After the exit, DNB moves to equal ownership among its three mobile network operator shareholders:

• CelcomDigi, through Intranation
• Maxis, through Maxis Broadband
• YTL Power International

MOF Inc. will retain a special share. That share safeguards national interests and keeps state stewardship of key strategic matters.

For practitioners, the shift matters. DNB becomes an operator-owned entity, funded in its own name, without a government guarantee behind its revolving credit. Three commercial shareholders will now shoulder network investment decisions directly.

How does the spectrum assignment fit in?

The financing coincides with a regulatory milestone. MCMC, the Malaysian Communications and Multimedia Commission, has awarded DNB the full 100MHz of the 3.3-3.4GHz (F0) band. DNB's entire 240MHz holding has been converted to a spectrum assignment issued by MCMC, effective 1 October 2026.

DNB said the assignment provides greater regulatory certainty. The 240MHz block, it stated, will improve network capacity, efficiency and performance. The operator also linked the holding to Massive MIMO, carrier aggregation, 5G Advanced and AI-driven network capabilities. Those are vendor-aligned capability claims; the concrete regulatory fact is the assignment itself and its effective date.

What did the CEO say?

DNB CEO Datuk Azman Ismail said the financing "provides DNB with a sustainable platform to operate on its own" and allows it to keep investing in network enhancement and capacity expansion.

He added that, as Malaysia progresses under its dual network framework, DNB is positioned to support the government's AI Nation aspirations.

The dual network context is relevant here. Malaysia moved away from a single wholesale 5G model when it approved a second network, which makes DNB's standalone funding capability and its equal-share ownership structure commercially significant rather than cosmetic.

What comes next?

The timeline is tight and concrete. MOF Inc. exits in early Q4 2026. The MCMC spectrum assignment already took effect on 1 October 2026. The refinanced facility replaced an instrument that expired on 29 September 2026. DNB now holds committed long-term funding, full regulatory title to 240MHz, and three equal commercial owners as it invests in network enhancement and capacity expansion.