Converge, LandBank ink loan agreement


LISTED Converge ICT Solutions Inc. has signed a 3 billion PPP term loan agreement with the state-owned Land Bank of the Philippines to finance the expansion of its fiber optic network.

In a document filed with the exchange, the fiber-optic internet service provider said the loan envelope would be used to supplement its domestic terrestrial and submarine fiber-optic backbone and meet its fund requirements. bearing.

LandBank’s loan package will also include an additional short-term loan line and a facility for its business transactions in the amount of up to 2 billion pesos.

“This loan financing brings us one step closer to our goal of connecting unserved and underserved areas of the country. The funds available will help us reach untapped markets and really ‘deepen’ those that already exist,” said the Converge CEO (CEO) Dennis Anthony Uy said.

Converge has earmarked 20 billion pesos in capital spending this year, with the majority earmarked for its nationwide expansion.

“As you expand your home network, expand your distribution reach and secure additional access to international connectivity, we at LandBank affirm our commitment to helping you achieve these goals,” said Cecilia Borromeo, President and CEO of LandBank.

Converge targets to cover 55% of households in the Philippines by 2025.

During its first half briefing last month, Converge said it has completed the initial phases of its national submarine cable network in the VisMin region, which has led to the activation of an end-to-end national backbone. end.

Meanwhile, the company reported first-half profit more than doubled to 3.25 billion pesos from 1.26 billion pesos year-on-year.

Its continued subscriber base also boosted the company’s consolidated revenue by 81.5 percent to 11.78 billion pesos in the first half, from 6.49 billion pesos last year.

Converge shares were down 10 centavos or 31% to close at P31.90 each on Friday.

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