KUALA LUMPUR: OCK Group Bhd recently secured a US$48.4 million syndicated loan which the company will use to repay the outstanding loan balance and complete the construction of telecommunication towers in Myanmar.
OCK Group will repay the balance of the original syndicated loan of US$30.4 million, which would benefit OCK through the optimisation of the financing structure.
The remaining US$18.0 million will be allocated to complete the construction of 150 telecommunication towers in Myanmar which are currently in the order book.
Under this exercise, OCK Group will consolidate the syndicated loan from OCK Yangon Private Ltd in Myanmar back to OCK group in Malaysia.
OCK Group signed the financing agreement on 28 March 2022.
OCBC Bank (Malaysia) Bhd (OCBC Malaysia) is the sole bookrunner and jointly mandated lead arranger together with United Overseas Bank (Malaysia) Bhd (UOB Malaysia).
Group managing director Sam Ooi Chin Khoon said the decision to undertake this refinancing exercise is well in line with the company's ongoing initiative to continue reviewing and enhancing financial management to optimise 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 Group towerco business outlook in Myanmar as we expect to see an increased flow of long-term recurring income with further upsides from co-sharing opportunities for our telecommunication towers," he said in a statement today.
OCK Group is Malaysia's largest telecommunication network solutions provider.
"Moving forward, we believe the opportunity for growth in the telecommunication space remains robust," Ooi added.
OCBC Malaysia chief executive officer Datuk Ong Eng Bin said the bank's strategic partnership with OCK Group has spanned over a decade.
"As an established regional banking group, we have supported them in their overseas and local investments.
"We look forward to playing our role as an important strategic financial partner to them in their growth journey," he said.
UOB Malaysia chief executive officer Ng Wei Wei said the bank had leveraged its established ASEAN franchise to support OCK Group's funding requirements and cross-border business expansion in Myanmar.
"Coupled with our unique combination of in-market presence, local knowledge and strong partner ecosystems, UOB Malaysia has been supporting our clients, such as OCK Group, to advance their businesses and connect them to opportunities that the region's economic potential and favourable demographics present," she said.