Converge ICT Solutions Inc. is pricing its P10-billion bond sale at 5.59 percent coupon rate.
The bond is part of the company’s P20- billion shelf-registered bond and will be sold at an initial P5 billion and another P5 billion for the oversubscription option.
The bond sale will run until April 1, 2022.
“The bonds have been priced at 50bps over Philippine 5 Year BVAL (Bloomberg valuation service) rates, at the tight end of the marketed 50-100bps (basis points) range, resulting in a total of c. 5.59 percent for the bond offering,” it the company said,
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.
Converge said the bond sale received a “PRS Aaa”, with a stable outlook, from the Philippine Ratings Services Corp.
Converge is expected to spend around P26 billion to 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.
