Converge exhausts P10-B bond sale proceeds for capex

MANILA  -Converge ICT Solutions Inc. has used the proceeds of its P10-billion fixed rate bond offering to fund its capital expenditures and other general corporate matters.

In a disclosure on Monday, the internet service provider shared it had already disbursed a net amount of P9.85 billion from the transaction.

The bulk or P7.21 billion of the funds were used last year while the rest was spent in the first half of 2023.

About P7.86 billion was allocated for capital expenditures while the remaining P1.93 billion was for general corporate purposes.

This year, the internet service provider has earmarked P12 billion to P15 billion in capital expenditures, lower than the P22 billion it spent in 2022. Converge is cutting back on expenses after spending upfront costs to widen its network.

A big chunk of the budget will be spent on the roll out of ports and routers and for investments in subsea cables and digitalization efforts.

It spent about P3 billion in January to March for port deployments and other network expansion initiatives.

Converge previously identified Bohol, Zamboanga, Palawan and Aklan as its growth areas for the year. It currently has a 56-percent household coverage, which has exceeded its 55-percent target, with the deployment of 8 million ports across the country.

The company, meanwhile, projects its total revenue to grow by 10 percent to 15 percent this year.

In the first quarter, Converge saw its net income improve by 10 percent to P2.17 billion as revenues grew by 12 percent to P8.64 billion.