U Mobile gets RM1b loan to expand ops
U Mobile Sdn Bhd has signed an agreement with United Overseas Bank (M) Bhd (UOB Malaysia) for a term-loan facility of RM1bil to fund its various capital expenditure programmes.
U Mobile said the amount would go towards its telecommunication network expansion and enhancement across the country.
Chief executive officer Wong Heang Tuck said the fresh injection also meant the telco would be able to expedite its network strategy, adding that customers would soon be able to enjoy a much better experience nationwide.
“The RM1bil 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,” he said in a statement.
He added that the agreement, apart from enabling U Mobile to build its financial track record, affirmed the company’s position as a credible challenger in the telecommunication sector.
“The telco has demonstrated sustained growth by constantly chal- lenging the status quo to bring the value and innovative services that customers desire,” said Wong.
As at Dec 31, 2017, U Mobile said its shareholders have made substantial investment amounting to over RM4bil.
“With the RM1bil loan from the commercial bank, U Mobile will be investing over RM5bil 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,” he said.
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, he added.