State-run Land Bank of the Philippines signed a P3-billion loan agreement with Converge Information and Communications Technology Solutions Inc. to help provide fast and reliable internet service to more subscribers nationwide.
LandBank president and chief executive Cecilia Borromeo, Converge chief executive Dennis Anthony Uy and president Maria Grace Uy led the virtual loan signing ceremony to support the fiber broadband service provider’s continuing terrestrial and subsea domestic network expansion and finance working capital requirements.
Borromeo cited the importance of investing in technology as more Filipinos adapted to digitalization amid the pandemic.
“We are hopeful on this new partnership between LandBank and Converge to ensure the delivery of fast and consistent internet services across the country. It is with urgency that we must support more users in adapting to home set-ups for work and education in the new normal,” Borromeo said.
“This is also aligned with LandBank’s thrust of leveraging on digital innovations to provide uninterrupted, safe and timely financial solutions to our clients, especially the unbanked and underserved,” Borromeo said.
Dennis Uy said the loan financing would bring it one step closer to its goal of connecting the unserved and underserved areas in the country.
“The available funds will help us reach into untapped markets and really ‘Go Deep’ into existing ones,” Uy said.
Converge will utilize the credit support from LandBank for its continued network expansion across the country, broadening its distribution reach and boosting international connectivity.
The total loan package from LandBank will also include an additional short-term loan line and facility for trade transactions amounting up to P2 billion.
LandBank successfully facilitated 73.5 million transactions amounting to P1.307 trillion through its five major e-banking channels from January to July 2021. This represented comparative year-on-year increases of 12 percent and 65 percent, respectively.
LandBank also facilitated the opening of more than 1.7 million online accounts through its digital on-boarding system or DOBS which digitizes the submission of account applications as of July 2021.
LandBank also continued to waive fees for inter-bank fund transfers via InstaPay and PESONet for retail clients until Sept. 30, 2021.