U Mobile inks RM1 billion credit facility with UOB Malaysia

04 Sep 2018 / 22:54 H.

KUALA LUMPUR: U Mobile Sdn Bhd has inked a three-year RM1 billion term loan credit facility with United Overseas Bank (Malaysia) Bhd (UOB Malaysia) to fund its various capital expenditure programmes, including the company's network expansion and enhancement goals across the country.
U Mobile CEO Wong Heang Tuck said the RM1 billion credit facility agreement is one of the largest to be signed in this country to date and this reflects the bank's vote of confidence in U Mobile's credit quality and business fundamentals.
"The fresh injection also means we are able to expedite our network strategy and customers will soon enjoy much better experience throughout the whole of Malaysia."
He added that the agreement, apart from enabling U Mobile to build a financial track record, affirms the company's position as a credible challenger in the telco landscape.
Over the past few years, the company has enjoyed traction in the industry and its subscriber base crossed the 6 million mark at the end of last year.
U Mobile's rising popularity in Malaysia also enabled the telco to become ebitda (earnings before interest, tax, depreciation & amortisation) positive mid last year, highlighting the company's improving financial health.
As at Dec 31, 2017, U Mobile's shareholders have invested over RM4 billion in the business. With the RM1 billion loan from the commercial bank, U Mobile would be investing over RM5 billion in its network infrastructure, aggressively expanding its network footprint nationwide as well as enhancing customers' mobile experience.
The investment will also accelerate the telco's growth ambitions, reinforcing its position as a serious industry contender. The network infrastructure upgrade is also a critical foundation to U Mobile's expanding suite of mobile digital services, which spans from telco-assurance to payments.

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