Converge signed a PHP3-Million term loan package agreement with Land Bank of the Philippines (Landbank) to fund its terrestrial and subsea domestic fiber backbone network and working capital requirements of the internet service provider.
The total loan package deal for Converge will include other short-term loan lines and facilities for trade transactions amounting to PHP2 billion.
According to Converge President Maria Grace Uy, the signed deal will provide the company with “financial flexibility” as they continue providing a pure fiber network to customers nationwide. It will also help the company reach its goal of providing 55% of Filipino households with fiber network by 2025.
As of end-June 2021, its pure fiber network service has passed over 8.3 million homes, over double the figure compared to the previous year. This accounts for 32% of total Philippine households and 57% of entire homes in Luzon.
To date, Converge allotted PHP20 billion in total for capital expenditures this 2021, with the bulk of the funds going into its nationwide expansion, including Visayas and Mindanao. In addition, it recently commercially rolled out its services in Cebu province and did a soft launch in Davao City.
“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,” commented Converge CEO Dennis Anthony Uy.