Robi Axiata is going to borrow $55 million from its owner Axiata Group Berhad for future investments.
The board of directors has decided to receive the "shareholder loan facility" for three years, said the telecom operator in a regulatory filing on Monday.
Robi did not pledge any asset as security and will not have to pay any charge to the Registrar of Joint Stock Companies in relation to the loan agreement.
The fund will be used to implement any investment plan, said Md Shahed Alam, chief corporate and regulatory officer of Robi Axiata.
Robi is the second-largest telecom operator in terms of subscribers, revenue and profit and holds 30.2 per cent of the market share.
Robi has been making efforts to improve its services and expand its customer base.
Having attained 4G leadership, Robi was the first company to launch 4.5G services in all 64 districts in 2018 and successfully conducted the first-ever trial of 5G technology in the same year.
The mobile phone operator started its journey in 1997 under the brand name of Aktel. It then changed its name to Robi Axiata in 2010.
Presently, Axiata Group of Malaysia holds the controlling stake in Robi at 61.82 per cent. Bharti Airtel of India holds 28.18 per cent, and the general public the remaining 10 per cent.
Robi joined the stock market through the largest-ever initial public offering (IPO) in the capital market's history in December 2020.
It raised roughly Tk 5.24 billion from a wide range of investors, including its own employees under the fixed-price method.
Robi posted a 5.52 per cent year-on-year profit growth to Tk 420 million for January-March, backed by higher revenue.
The company's share price has been languishing at the floor price of Tk 30 on the Dhaka Stock Exchange since early August last year.