Converge secures LandBank loan to fund network expansion
MANILA, Philippines – Converge ICT Solutions, Inc. secured a loan package from state-run Land Bank of the Philippines to fund its domestic fiber cable project.
In a disclosure to the Philippine Stock Exchange on Friday, the fiber broadband provider said the P3-billion loan will also finance its working capital requirements.
At the same time, the LandBank loan came with a short-term additional line and a trade transactions facility of up to P2 billion.
“This loan financing brings us one step closer to our goal of connecting the unserved and underserved areas in the country. The available funds will help us reach into untapped markets, and really ‘Go Deep’ into existing ones,” Dennis Anthony Uy, company chief executive, said.
For capital expenditures, Converge programmed P20 billion in total, where a majority will bankroll its countrywide expansion that connected Visayas and Mindanao to its national fiber network. The company is hoping to cover 55% of Filipino households by 2025
By the end of June, the company’s pure fiber network has coursed through 8.3 million homes, comprising 32% of total households in the country and 57% in Luzon.
Converge shares closed Friday trading at P31.90 apiece, down 0.31%.
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