Converge ICT Solutions Inc. on Friday announced that it has signed a 3 billion PPP loan with the state-run Land Bank of the Philippines to finance the completion of its domestic terrestrial and submarine fiber backbone and support the working capital needs of the Internet service provider. “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, ”Converge CEO Dennis Anthony Uy said in a statement. “Our investments in the network are at the heart of our service to Filipinos. There is still a huge pent-up demand for broadband connectivity in the country. And the need for quality internet services became even more critical when the pandemic struck. Suddenly home has become the office, the school, the entertainment center and the market at the same time, ”he said. LandBank’s loan package will include an additional short-term loan line and a facility for its business transactions in the amount of 2 billion pesos. “This loan package will provide Converge with financial flexibility as we continue to connect Filipino households to our nationwide fiber optic network,” said Converge President Maria Grace Uy. “We expect this financing facility to strengthen our balance sheet and help us meet our goal of covering 55% of Filipino households by 2025.” she said.
Converge has scheduled 20 billion pesos for 2021 capital spending, most of it going to its national expansion where it connected Visayas and Mindanao to its national fiber optic network. It recently commercially deployed services in Cebu Province and had a smooth launch in Davao City. “As you expand your national 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 LandBank President and CEO , Cecilia Borromeo. “In terms of inclusiveness, Converge’s ‘Go Deep’ strategy to penetrate unserved and underserved areas is aligned with ours, as LANDBANK promotes financial inclusion by serving unbanked and underserved Filipinos,” said she declared. Converge’s pure fiber network served more than 8.3 million homes at the end of June, more than double the figure from a year ago. This represented 32 percent of the total Filipino households and 57 percent of the total households in Luzon.
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