Digital Nasional Berhad (DNB), Malaysia's wholesale 5G network operator, has secured 5.2 billion Malaysian ringgit (US$1.27 billion) in a syndicated Islamic term financing deal — one of the largest syndicated loan facilities ever arranged for an unlisted company in Malaysia.

The facility refinances DNB's Government Guarantee Revolving Credit Facility (GGRCF), which was due to expire on September 29, 2026, and replaces a state-backed funding structure with a market-based, long-term one. Maybank Investment Bank acted as mandated lead arranger, bookrunner and coordinator, alongside joint mandated lead arrangers AmInvestment Bank Berhad, CIMB Islamic Bank, RHB Islamic Bank and United Overseas Bank (Malaysia). AmInvestment Bank served as financial advisor to DNB.

"The successful completion of this MYR5.2 billion financing exercise reflects strong confidence in our business fundamentals, operational track record and long-term role in Malaysia's digital economy," said DNB CEO Azman Ismail.

"This financing provides DNB with a sustainable platform to operate on its own, continue investing in network enhancement and capacity expansion, and leverage our expanded spectrum assets," he added.

Government exit takes shape

The deal paves the way for Malaysia's Ministry of Finance Inc. (MOF) to exit its position as an ordinary shareholder. The MOF currently holds a 31.18% stake in DNB. The three Malaysian operators that co-own the wholesaler — CelcomDigi, Maxis and YTL Communications — hold 22.94% each, having injected an additional MYR202 million ($49.45 million) apiece in May to support 5G operations and fund spectrum acquisition.

Those three operators are expected to take equal ownership of DNB in early Q4 2026, once the finance ministry completes its planned departure. The government will not leave entirely: it retains a special share designed to protect national interests and ensure "continued stewardship of key strategic matters."

The ownership restructuring and the refinancing unfold against the backdrop of Malaysia's transition to a dual 5G network framework, ending the single-wholesaler model that DNB was originally created to run.

Spectrum groundwork

The financing follows a network upgrade with direct capacity consequences. Three months ago, DNB activated an additional 100MHz of 5G spectrum in the 3.3GHz to 3.4GHz band. Combined with its existing 3.4–3.5GHz holdings, the new allocation doubles network capacity to 200MHz of contiguous midband spectrum.

The Malaysian Communications and Multimedia Commission (MCMC) has converted all 240MHz of DNB's spectrum holdings into a spectrum assignment, effective October 1, 2026.

"The 240 MHz spectrum block will enhance network capacity, efficiency and performance, enabling faster speeds, lower latency and improved customer experience. It also supports the deployment of advanced technologies, including Massive MIMO, carrier aggregation, 5G Advanced and AI-driven network capabilities, further strengthening DNB's leadership in next-generation connectivity," the company said in a statement.

That claim aligns with what operators would expect from doubled midband capacity, though the promised gains in speed and latency from features such as 5G Advanced and AI-driven capabilities will only be verifiable as deployment proceeds. The contiguous 200MHz block, by contrast, is a concrete asset that supports carrier aggregation today.

What comes next

With long-term funding in place, a defined path to full MNO ownership and a substantially larger spectrum portfolio, DNB enters the dual-network era with clearer commercial footing. The immediate milestones to watch are the October 1, 2026 spectrum assignment taking effect and the equal transfer of ownership to CelcomDigi, Maxis and YTL Communications in early Q4 2026.