U Mobile Sdn Bhd announced that it has entered into an agreement for a term loan facility of RM1 billion to fund its various capital expenditure (CAPEX) programmes.
U Mobile signed the agreement for the three-year RM1 billion term loan credit facility with United Overseas Bank (Malaysia) Bhd (UOB Malaysia). The amount will go towards the company’s 4G LTE network expansion and enhancement goals across the country.
Wong Heang Tuck, U Mobile’s CEO, said, “U Mobile is very pleased to be receiving support from UOB Malaysia. 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 the agreement, apart from enabling U Mobile to build financial track record, affirms the company’s position as a credible challenger in the telco landscape. The telco has demonstrated sustained growth by constantly challenging the status quo to bring the value and innovative services that customers desire.
Over the past few years, U Mobile said it has enjoyed huge traction in the industry and its subscriber base crossed the 6-million-mark at the end of last year. This shows customers are responding well to the telco’s offer and trust for the brand and products is increasing from strength to strength. U Mobile’s rising popularity in Malaysia also enabled the Telco to become EBITDA positive mid last year, highlighting the company’s improving financial health, it claims.
As at 31 December 2017, U Mobile’s shareholders have made substantial investment amounting to over RM4 billion in the business.
The signing of the agreement took place on 30 August 2018 at U Mobile’s Corporate Office at Berjaya Times Square.