LISTED fiber internet service provider Converge ICT Solutions, Inc. announced on Thursday that it recently received the certificate of permit from the Securities and Exchange Commission (SEC) for its maiden bond offering.
The offering amounts to “P5 billion on the base tranche with an oversubscription option of up to P5 billion,” the company said in an e-mailed statement.
The offer period is slated for March 28 to April 1 this year.
“The issuance of the company’s first P10-billion peso-denominated fixed-rate bonds [is] under its P20-billion shelf registration program,” it noted.
The company said the bonds had been priced at 50 basis points (bps) over the Philippine five-year BVAL rates, at the tight end of the marketed 50-100 bps range, or a total 5.59% for the bond offering.
Converge President and Co-Founder Grace Y. Uy said the offering would “help fund the expansion of our digital infrastructure as we further widen our reach nationwide.”
The company continues to expand its fiber network, especially in Visayas and Mindanao.
Converge noted that the first tranche bonds received the top credit rating of PRS Aaa, with a stable outlook, from the Philippine Ratings Services Corp. It appointed BDO Capital & Investment Corp. as issue manager as well as joint lead underwriter along with BPI Capital Corp.
Converge expects to spend around P26 billion to P28 billion for capital expenditure (capex) projects this year, higher than last year’s P25 billion.
The company’s capex initiatives for the year include selected investments in international subsea cables and enhancement of its information technology systems.
Converge said its net income more than doubled to P7.16 billion in 2021 from P3.39 billion in 2020. Its revenues increased by 69% to P26.48 billion from P15.65 billion previously.
On Tuesday, its shares inched up by P0.70 or 2.46% to close at P29.20 apiece at the stock exchange. — Arjay L. Balinbin