Digital Nasional Bhd (DNB) has completed a RM5.2 billion syndicated Islamic term financing, closing the funding gap that stood between Malaysia's single national 5G wholesaler and its transition to a dual-network market structure.

The financing, announced on Thursday, refinances DNB's Government Guarantee Revolving Credit Facility, which expired on Sept 29, 2026, and replaces it with what the company calls a sustainable long-term funding structure. It also triggers two structural changes: the planned exit of Minister of Finance Inc (MOF Inc) as an ordinary shareholder and the move to equal ownership among DNB's mobile network operator shareholders, expected in early fourth quarter of 2026.

Who owns DNB after the transition?

Once the ownership transition completes, DNB will be held equally by its MNO shareholders. They comprise:

• CelcomDigi Bhd, acting through Infranation Sdn Bhd
• Maxis Broadband Sdn Bhd
• YTL Power International Bhd

MOF Inc will not disappear entirely. It retains a special share in DNB to safeguard national interests, which DNB said ensures continued stewardship of key strategic matters while the company advances its next phase of development.

What does the spectrum assignment change?

The financing announcement coincides with a parallel regulatory milestone. DNB has received the full 100MHz in the 3.3–3.4GHz band, awarded by the Malaysian Communications and Multimedia Commission (MCMC), and its entire 240MHz spectrum holding converts to a spectrum assignment effective Thursday.

DNB said the converted spectrum would increase network capacity and support technologies including massive MIMO, carrier aggregation, 5G Advanced and AI-driven network capabilities. Those claims are vendor-grade aspirations at this stage; the concrete, near-term effect is legal and financial rather than technical — DNB now holds its spectrum under a long-term assignment instead of interim access.

For CelcomDigi, the structure of the award matters as much as the bandwidth. The operator said the 15-year spectrum period gives long-term certainty over spectrum availability and costs, supporting more effective network planning and investment.

"With 200MHz of contiguous mid-band spectrum, DNB is well positioned to meet growing consumer and enterprise demand, while providing a strong foundation to modernise the network, expand indoor building solutions, enhance coverage and maximise spectrum utilisation," CelcomDigi said in a separate statement.

Why the financing matters commercially

DNB operates Malaysia's first 5G network as a wholesale model, with mobile operators buying capacity rather than building their own radio access. The government decided to shift to a dual-network framework, in which a second 5G network operator will compete with DNB. That makes the company's balance sheet independence critical: DNB must fund network enhancement and capacity expansion without leaning on government guarantees.

DNB chief executive officer Datuk Azman Ismail framed the deal in exactly those terms, saying the financing provides a sustainable platform to operate on its own, continue investing in network enhancement and capacity expansion, and leverage expanded spectrum assets.

"As Malaysia progresses under the dual network framework, DNB remains committed to providing world-class digital infrastructure that supports our shareholders, customers, enterprises and government agencies," Azman said.

He added that strong financing, enhanced spectrum resources and a nationwide 5G platform position DNB to support the government's AI nation ambitions — a reference to Malaysia's broader policy push rather than a specific deployment commitment.

What CelcomDigi brings to the table

CelcomDigi, Malaysia's largest mobile operator by subscribers, set out its contribution to the shared-network model in some detail. It said it would bring its scale, nationwide network assets and more than 30 years of telecommunications experience to support DNB, leveraging existing infrastructure, sites and capabilities to:

• Drive cost efficiencies across the shared network
• Support coverage expansion
• Accelerate indoor 5G deployment

The emphasis on indoor coverage is telling. Indoor 5G has been a persistent weak point for mid-band networks in dense markets, and CelcomDigi's building portfolio and site inventory are assets DNB cannot replicate quickly on its own.

The road to Q4 2026

The sequencing is now fixed. DNB holds its financing, its 240MHz spectrum assignment takes effect immediately, and the ownership restructuring — MOF Inc out as ordinary shareholder, three MNOs in on equal terms — is expected in early fourth quarter of 2026. The refinanced facility, replacing the expired government-guaranteed revolving credit line, gives the wholesaler funding headroom for the capacity upgrades that the dual-network era will demand.