Converge borrows P3 billion from LandBank
September 03, 2021 - Friday 9:09 PM by GDM
Broadband service provider Converge ICT Solutions Inc. said Friday it secured a P3-billion loan from state-run Land Bank of the Philippines to fund the completion of its terrestrial and subsea domestic fiber backbone network.
In a disclosure to the stock exchange, Converge said the money it borrowed from LandBank would also be used to “support the working capital requirements.”
“This loan financing brings us one step closer to our goal of connecting the unserved and underserved areas in the country,” Dennis Anthony Uy, company chief executive, said.
“The available funds will help us reach into untapped markets, and really ‘Go Deep’ into existing ones,” Uy added.
The total loan package from LANDBANK will also include an additional short term loan line as well as a facility for its trade transactions amounting to up to P2 billion.
Converge has programmed a total of P20 billion for capital expenditures this year, with bulk of the funds going into its nationwide expansion where it connected Visayas and Mindanao to its national fiber backbone.
It recently commercially rolled out its services in Cebu province and did a soft launch in Davao City.
As of end-June 2021, the pure fiber network of Converge has passed over 8.3 million homes, more than double the figure from its year-ago level. This accounts for 32% of total Philippine households and 57% of total homes in Luzon.
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