The Philippines’ leading integrated telecommunications network PLDT on October 23 announced it has secured its first social loan amounting to 2 billion pesos (US$34.50 million) from HSBC Philippines to expand its fibre network in underserved areas and unserved communities in the country.
Social loans are financing solutions where the proceeds aim to generate positive social outcomes such as increasing access to affordable basic infrastructure and essential services. PLDT’s social loan will support the further expansion of its fibre network infrastructure to reach the country’s fourth to sixth class municipalities, including geographically isolated and disadvantaged areas (GIDAs).
As of June 2024, the Philippine Statistics Authority classified a total of 729 municipalities as fourth to sixth class with PLDT’s fibre network currently covering 59% of these areas. The company has outlined plans to extend fibre services to an even greater number of municipalities in the coming years, prioritizing areas most in need of connectivity and enabling new communities to benefit from access to data and the internet.
As of mid-2024, 767 GIDAs have been connected to PLDT’s fibre infrastructure, ensuring that even the most remote communities have digital access. To complement GIDA targets that are focused on wireless connectivity, the expansion of fibre services is critical to providing inclusive access to education, healthcare, and economic opportunities for millions of Filipinos.
PLDT’s chief finance and chief risk officer Danny Yu underscores the significance of the social loan, saying: “The integration of PLDT’s sustainability agenda in the 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.”
PLDT’s chief sustainability officer Melissa Vergel de Dios echoes this sentiment, underscoring the broader impact of PLDT’s sustainability initiatives. “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,” she adds.
The facility represents HSBC’s first social loan to a telco company in the Philippines. In March this year, the bank extended a 1 billion pesos green loan to PLDT to support the upgrade of the company’s network from copper to fibre. A fibre network uses less electricity, resulting not only in operational cost savings but also in a lower carbon footprint.
At the end of June 2024, PLDT’s fibre infrastructure spans over 1.15 million cable kilometres, connecting both international and domestic markets.
