Converge Information and Communications Technology Solutions Inc. already spent the bulk of the proceeds of its maiden P10 billion bond offer last year, raising the possibility of a new round of fundraising via the capital market.
Converge has an existing shelf registration to offer as much as P20 billion worth of bonds. Last April, the telecom company used part of that shelf registration and raised from the bond sale net proceeds of P9.85 billion.
In disclosure to the Philippine Stock Exchange on Monday, Converge said that in 2022 it already spent P7.2 billion of the net bond proceeds for general corporate purposes and capital expenditures for the expansion of its nationwide network, including on new markets in the Visayas and in Mindanao.
Converge’s maiden bond has received the top-notch issue credit rating of “PRS Aaa”, with a stable outlook, from the Philippine Ratings Services Corporation.
The only pure fiber enterprise in the Philippines, Converge is expected to spend around P26 billion in total capital expenditures in 2022 for the completion of its terrestrial backbone and further expansion of its distribution network.
In the nine months to September, Converge recorded net profit of 6.11 billion, up from PHP5.2 billion in the year-earlier period, helped by the continued expansion of its fiber network.
