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Converge ICT raises PHP 3 billion from Landbank to fuel network buildup

Fiber internet provider Converge ICT sealed a loan agreement with the state-owned Land Bank of the Philippines to help fund its network rollout.
Converge ICT raises PHP 3 billion from Landbank to fuel network buildup
Converge signs loan deal with Landbank

New funds to support network expansion

In a statement, the company said it inked a PHP 3 billion term loan agreement with the lender, which will be used to finance the completion of its terrestrial and subsea domestic fiber backbone network, and support Converge's capital requirements.

Converge chief executive officer Dennis Anthony Uy said the fresh funds will allow the group to further expand its network to cover unserved and underserved areas in the Philippines.

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, Uy said.

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 PHP 2 billion.

For this year, Converge seeks to spend PHP 20 billion as it boosts its coverage to the Visayas and Mindanao. Its service is now available in Cebu province and Davao City. 

Converge is targeting to cover 15 million or 55 percent of Philippine households by 2025.

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