Converge prices P10 billion maiden bond offering slated until April 1


Posted at Mar 29 2022 11:07 AM

MANILA - Converge ICT Solutions Inc on Tuesday said it has received regulatory approval for its first P10 billion peso-denominated fixed-rate bonds under its P20 billion shelf registration program.

The fiber broadband provider said the Securities and Exchange Commission has released its Certificate of Permit for the Coverge’s maiden bond offering amounting to P5 billion on the base tranche with an oversubscription option of up to P5 billion.

“We are pleased to be able to tap the bond market to help fund the expansion of our digital infrastructure as we further widen our reach nationwide” said Grace Uy, Converge president and co-founder.

The offer period is slated for March 28 to April 1, 2022.

“The bonds have been priced at 50bps over Philippine 5 Year BVAL rates, at the tight end of the marketed 50-100bps range, resulting in a total of c. 5.59 percent for the bond offering,” Converge said. 

The proceeds of the bond issue will be used for capital expenditures related to the expansion of its nationwide fiber network, including to new markets in Visayas and Mindanao.

BDO Capital & Investment Corporation as Issue Manager and BDO Capital & Investment Corporation and BPI Capital Corporation are the joint lead underwriters.

Converge is expected to spend around P26-28 billion in total capital expenditures in 2022 for the completion of its terrestrial backbone and further expansion of its distribution network throughout the country.


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