P1 gets RM50m loan to expand WiMAX network

PETALING JAYA: Packet One Networks (M) Sdn Bhd (P1) has secured a RM50mil loan from Malaysia Debt Ventures Bhd (MDV) to expand its WiMAX service nationwide.

Chief executive officer Michael Lai said the MDV loan would likely be fully utilised this year and would be repaid over 48 months.

“The loan will go towards financing our capital expenditure (capex) for further expansion of our WiMAX network infrastructure as well as related services,” he told a press conference after the signing ceremony between the company and MDV for the financing facilities yesterday.

He said the capex for P1 would be at least RM200mil this year compared with about RM400mil last year.

On the interest rate for the loan, MDV managing director and chief executive officer Md Zubir Ansori Yahaya said the interest rate was much more attractive compared with rates offered by conventional banks but refused to disclose the exact figure.

“We are very different from banks as our loan is more flexible,” he said.

He said MDV would track the performance of P1 for possible additional loan as the loan limit of for information and communications technology company was RM120mil.

A wholly-owned subsidiary of the Minister of Finance Inc, MDV provides financing solutions and nurturing initiatives to locally incorporated companies.

As at the end of last year, MDV had approved more than RM4.65bil in financing while its total loan portfolio stands at more than RM1.34bil.

On P1’s listing plan, Lai said it would depend on the market condition.

“We definitely hope for it to happen in two years but we have not started to talk to investment banks,” he said, adding that Malaysia would be its first choice venue for listing.

He said the company also planned to expand its WiMAX service to east Malaysia by the second half of this year.

“We are on track to achieve 45% coverage of Peninsular Malaysia’s population by year-end and 65% of the entire population by end of 2012,” he said.

Its network had been deployed to over 600 sites by end-2009, covering major cities like Kuala Lumpur, Johor Baru and Ipoh, representing over 35% of west Malaysia’s population.

-The Star