OCK Group secures RM212mil loan from OCBC

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PETALING JAYA: Telecom Network Solution Provider, OCK Group Bhd secured a syndicated loan of US$48.4 million (RM212.2 million) from OCBC Bank (M) Bhd (OCBC Malaysia).

OCBC Malaysia is the sole joint bookrunner and lead arranger with United Overseas Bank (M) Bhd (UOB Malaysia).

In a statement yesterday, the OCK Group said the syndicated loan would be consolidated from OCK Yangon Pte Ltd in Myanmar to the company in Malaysia.

Proceeds from the refinancing will be used to partially repay the outstanding balance of the initial syndicated loan of US$30.4 million (RM133.3 million), which will benefit OCK Group through the optimization of the financing structure.

The remaining US$18 million (RM79 million) will be spent on completing the construction of 150 telecommunication towers in Myanmar, which are currently in the order book.

The financing agreement was signed on March 28, 2022.

“Our decision to undertake this refinancing exercise is consistent with our ongoing initiative to continue to review and improve our financial management to ensure that we optimize our capital structure and financial metrics,” said Sam Ooi Chin Khoon. , Managing Director of the OCK Group.

“The support received from OCBC Malaysia and UOB Malaysia reaffirms their confidence and prospects in the assets of OCK Group’s towerco.

“Our business in Myanmar has been relatively smooth with no major issues in our operations,” Ooi added.

“We remain confident about towerco’s business prospects in Myanmar as we expect an increased long-term recurring revenue stream with new benefits from co-sharing opportunities for our telecom towers,” he added. .

Going forward, Ooi said, the group expects growth opportunities in the telecommunications space to remain strong.

OCBC Malaysia Managing Director Datuk Ong Eng Bin said the bank’s strategic partnership with OCK Group spans more than a decade.

“As an established regional banking group, we have supported the company in its overseas and local investments.

“We look forward to playing our role as an important strategic financial partner to the company on its growth journey,” he said.

Meanwhile, UOB Malaysia Managing Director Ng Wei Wei said the bank had leveraged its established franchise in ASEAN to meet OCK Group’s financing needs and cross-border business expansion in Myanmar. .

“Coupled with our unique combination of market presence, local knowledge and strong partner ecosystems, UOB Malaysia helps our clients such as OCK Group to advance their businesses and connect them to the opportunities presented by the economic and the region’s favorable demographics,” she says.

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