Converge ICT Solutions Inc. plans to set a higher capital expenditure in 2024 to finance investment in submarine cable systems.
Maria Grace Uy, Converge president and co-founder said in a briefing capex will be in the boundary of P15 billion to P17 billion in 2024 from P12 to P15 billion capex guidance this year.
The increase in capex will fund in part the P7 billion to P8 billion payment on Indefeasible Rights of Use (IRU) to complete their investments in the Asia-Pacific and TransAsia subsea cable system mainly Bifrost cable system and SEA-H2X submarine cable.
The balance of the capex will be split between access investment which constitutes the large of the balance and investment in digital infrastructure.
“Our capex continues to be internally funded we still have a balanced amount from the prior year but if we see additional opportunities to invest then that will be the time we consider raising funds,” Uy said when asked if the company plans to borrow funds this year.
