Converge signs a loan agreement with LANDBANK

Converge Information and Communications Technology Solutions, Inc. (PSE: CNVRG), a leading Philippine fiber broadband provider, has signed 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 internet service provider’s working capital requirements.

“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.”

This year, Converge has set aside P20 billion for capital expenditures, with the majority of the cash going toward its statewide expansion, which included connecting Visayas and Mindanao to its national primary production. It just began commercial operations in Cebu province and had a soft opening 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.

Converge’s pure fiber network has reached over 8.3 million homes by the end of June 2021, more than double the number from the previous year. This accounts for 32% of all households in the Philippines and 57% of all dwellings in Luzon.

About Converge ICT Solutions, Inc.

Converge Information and Communications Technology Solutions, Inc. (PSE:CNVRG) is the leading pure fiber data network and internet service provider in the country. It is the first to run a pure end-to-end fiber internet network, providing Filipinos simple, fast, and reliable internet connection. Converge is ISO 9001 and CE2.0 Certified.