The Philippines’ integrated telecommunications provider, PLDT Inc. (PLDT) announced that it has secured a PHP2 billion ($36.5 million) social loan facility from HSBC Philippines (HSBC).
The funding aims to support PLDT’s efforts to narrow the digital divide by expanding its fiber network infrastructure to underserved and unserved communities across the country.
Social loans are designed to generate positive social outcomes, such as increasing access to affordable basic infrastructure and essential services.
PLDT’s latest loan will facilitate the extension of its fiber optic network to fourth to sixth class municipalities, including Geographically Isolated and Disadvantaged Areas (GIDAs).
As of June 2024, the Philippine Statistics Authority identified 729 municipalities as fourth to sixth class, with PLDT’s fiber network currently covering 59% of these regions.
The company plans to further expand its fiber services, prioritizing areas most in need of enhanced connectivity to provide access to data and the internet.
This initiative aligns with President Ferdinand R. Marcos Jr.’s directive for the telecommunications sector to enhance connectivity in GIDAs.
By mid-2024, PLDT had connected 767 GIDAs to its fiber infrastructure, ensuring that even the most remote communities gain digital access.
Danny Yu, PLDT’s Chief Finance and Chief Risk Officer, emphasized the importance of the social loan, stating, “The integration of PLDT’s sustainability agenda in our business is evident even in the way we fund our projects. We are happy to find a like-minded partner in HSBC who is helping to fund our efforts to narrow the digital divide and connect unconnected communities.”
Melissa Vergel de Dios, PLDT’s Chief Sustainability Officer, highlighted the broader impact of the initiative: “Our commitment to sustainability includes a strong focus on digital inclusion. By expanding our presence in GIDAs and low-income municipalities, we are helping to foster inclusive growth and development in some of the most remote parts of the country.”
HSBC Philippines Head of Wholesale Banking, Mimi Concha, added, “We are honored to support PLDT in their endeavor to provide better connectivity infrastructure for the underserved markets across the Philippine archipelago. With this being HSBC’s first social loan facility to a telco company in the Philippines, it’s noteworthy that this project will help improve internet access for Filipinos in these areas, enabling them to actively participate and compete in the digital economy.”
Earlier this year, PLDT secured a PHP1 billion green loan from HSBC to upgrade its network from copper to fiber. The fiber network not only reduces electricity consumption, resulting in operational cost savings, but also contributes to a lower carbon footprint. By the end of June 2024, PLDT’s fiber infrastructure extended over 1.15 million cable kilometers, connecting both international and domestic markets.
PLDT’s ongoing investments in fiber optics and sustainable financing underscore its commitment to enhancing digital infrastructure and promoting inclusive growth across the Philippines.
Business News Asia