The company has outlined plans to extend fiber services to an even greater number of municipalities in the coming years, prioritizing areas most in need of connectivity enabling new communities to benefit from access to data and the internet.
Dominant carrier PLDT has secured a P2 billion social loan facility from HSBC Philippines (HSBC) to expand its fiber network.
The company said the social loan from HSBC will also be used as part of its commitment “to narrow the digital divide and connect underserved and unserved communities in the country.”
Social loans
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 fiber 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 fiber network currently covering 59% of these areas.
The company has outlined plans to extend fiber services to an even greater number of municipalities in the coming years, prioritizing areas most in need of connectivity enabling new communities to benefit from access to data and the internet.
Connectivity initiative
This initiative also aligns with President Ferdinand R. Marcos Jr.’s call for the telecommunications industry to focus on enhancing connectivity in GIDAs. As of mid-2024, 767 GIDAs have been connected to PLDT’s fiber infrastructure, ensuring that even the most remote communities have digital access.
To complement GIDA targets that are focused on wireless connectivity, the expansion of fiber 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, emphasized the significance of the social loan. “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.”
Sustainability component
PLDT’s Chief Sustainability Officer Melissa Vergel de Dios echoed 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.”
“We are honored to support PLDT in their endeavor to provide better connectivity infrastructure for the underserved markets across the Philippine archipelago. With this #SustainabilityEveryday being HSBC’s first social loan facility to a telco company in the Philippines, it’s noteworthy that this project will help support the improvement of access to the internet for Filipinos in these underserved areas so that they can actively participate and compete in the digital economy,” said HSBC Philippines Head of Wholesale Banking Mimi Concha.
Green loan
Earlier this year, PLDT secured a P1 billion green loan facility from HSBC to support the upgrade of PLDT’s network from copper to fiber. A fiber 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 fiber infrastructure spans over 1.15 million cable kilometers, connecting both international and domestic markets.
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