Converge inks loan package with LANDBANK
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Converge
and LANDBANK officials at the Loan Agreement Signing (Top row, from
left) Converge CEO Dennis Anthony Uy, LANDBANK President and CEO Cecilia
Borromeo, Converge President Maria Grace Y. Uy (Bottom row, from left) LANDBANK Agricultural and Development Lending Sector, Officer-in-Charge Senior Vice President Filipina B. Monje, Converge Deputy Chief Finance Officer Christine Renee R. Blabagno and LANDBANK Corporate Banking Group Head, Senior Vice President Ma. Celeste A. Burgos |
Converge inks loan package with LANDBANK
Leading Philippine fiber
broadband provider Converge Information and Communications Technology Solutions,
Inc. (PSE: CNVRG) has inked a P3 billion term loan agreement with state-owned
Land Bank of the Philippines (LANDBANK) to fund the completion of its
terrestrial and subsea domestic fiber backbone network, as well as support the
working capital requirements of the internet service provider.
“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,” said Converge
CEO Dennis Anthony Uy.
“Our
network investments are at the core of our service to Filipinos. There is still
huge pent-up demand for high-speed broadband connectivity in the country. And
the need for quality internet services became even more critical when the
pandemic happened. Suddenly, the home became the office, the school,
entertainment center, and marketplace in one,” he noted.
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.
“This
loan package will provide Converge with financial flexibility as we continue to
connect Filipino households to our pure fiber network nationwide,” said
Converge President Maria Grace Uy. “We expect this financing facility to strengthen
our balance sheet and help us reach our goal of covering 55% of Filipino
households by 2025.”
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
you further expand your domestic network, broaden your distribution reach, and
secure additional access to international connectivity, we in LANDBANK affirm
our commitment to support you in meeting these objectives. In terms of
inclusivity, Converge’s “Go Deep” strategy to penetrate unserved and
underserved areas is aligned with our own, as LANDBANK promotes financial
inclusion by serving unbanked and underserved Filipinos,” said LANDBANK
President and CEO Cecilia Borromeo during the signing ceremony.
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.