OCK Group Bhd, Malaysia’s largest telecommunication network solutions provider, announced that the Group recently secured a USD48.4 million syndicated loan with OCBC Bank (Malaysia) Bhd (“OCBC Malaysia”) as the sole bookrunner and joint mandated lead arranger together with United Overseas Bank (Malaysia) Bhd (“UOB Malaysia”).
Under this exercise, the syndicated loan will be consolidated from OCK Yangon Private Limited in Myanmar back to OCK in Malaysia. The financing agreement was signed on 28 March 2022.
Proceeds from the refinancing will be used to partly repay the outstanding balance of the original syndicated loan of USD30.4 million which would benefit OCK through the optimisation of financing structure. The remaining USD18.0 million will be dedicated to completing the construction of 150 telecommunication towers in Myanmar which are currently in the order book.
OCK group managing director Sam Ooi Chin Khoon commented, “Our decision to undertake this refinancing exercise is well in line with our ongoing initiative to continue to review and enhance our financial management to ensure we optimise our capital structure and financial metrics. The support received from OCBC Malaysia and UOB Malaysia reaffirms their confidence and outlook in OCK’s towerco assets. Our business in Myanmar thus far has been relatively smooth with no major hiccups to our operations. We remain confident of OCK towerco business outlook in Myanmar as we expect to see an increase flow of long-term recurring income with further upsides from co-sharing opportunities for our telecommunication towers.”
“Moving forward, we believe the opportunity for growth in the telecommunication space remains robust.” He added.
