Converge pipelines P20 billion bonds for shelf registration

MANILA, Philippines — Converge ICT Solutions Inc. is eyeing to raise P20 billion through the sale of fixed rate bonds through a shelf-registration.

The listed fiber broadband provider in a stock exchange filing said its board of directors approved in a special meeting the application for the shelf registration and listing of peso-denominated fixed rate bonds with an aggregate principal amount of P20 billion.

The bonds will be issued to the public within a period of three years, as allowed in the Securities and Exchange Commission (SEC)’s shelf registration program.

Converge intends to issue up to P10 billion worth of bonds as part of the initial tranche.

The company will file with the SEC the appropriate registration statement and prospectus for the bonds and its initial tranche.

It will likewise file with the Philippine Dealing & Exchange Corp. of the listing application for the initial tranche of the bonds.

Shelf registration is an option for issuers to register and sell under the same regulatory documents securities which they do not intend to sell right away.

Converge has earmarked P20 billion for capital expenditures this year which will be used for the expansion of its backbone and the deployment of additional fiber-to-the-home ports.

Given its aggressive expansion, the company has accelerated its target of covering 55 percent of Philippine households with high-speed fiber connectivity by two years to 2023, from its earlier target of 2025.

Converge has nearly 1.6 million residential subscribers as of the end of September, almost double compared to the same period last year.

While its operations are currently centered on providing high-speed fixed broadband, the company is also looking to expand to new businesses such as fintech, e-games, and content, while continuing to grow its core broadband services.