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PLDT secured a $34.4 million social loan from HSBC, which will be used to expand its fiber infrastructure to unserved and underserved areas in the Philippines.
PLDT has secured a P2 billion (US$34.4 million) social loan from HSBC Philippines to expand its fiber infrastructure to the country's remote and poor areas.
Social lending is a form of financing where the proceeds are used to achieve positive social outcomes, such as increasing access to affordable basic infrastructure and essential services.
In a stock exchange filing on Wednesday, PLDT said the social loan will support the expansion of its fiber network infrastructure "to reach the country's fourth to sixth class municipalities, including Geographically Isolated and Disadvantaged Areas (GIDAs)."
According to the Philippine Statistics Authority, as of June 2024 there are a total of 729 municipalities classified as fourth to sixth class. Approximately 59% of these areas are currently covered by PLDT's fiber network.
The Filipino telco giant said it will extend fiber services to more communities in the coming years, giving priority to areas with the greatest connectivity needs and enabling new communities to benefit from data and Internet access.
"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," said Melissa Vergel de Dios, PLDT's chief sustainability officer, in a statement.
Fiber connectivity complements wireless
The Philippine government has asked the telecommunications industry to focus on improving connectivity in GIDAs – primarily through wireless connectivity – as part of its nationwide digitization plan.
According to PLDT, the installation of a fiber network in these areas complements wireless connectivity, adding that expanding fiber services is critical to providing access to education, healthcare and economic opportunities for millions of Filipinos.
As of the middle of 2024, the telco giant has connected 767 GIDAs to its fiber infrastructure.
Mimi Concha, head of wholesale banking for HSBC Philippines, said the recent deal with PLDT is the first social loan granted to a telecommunications company.
"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," she said in a statement.
This is PLDT's second financing agreement with HSBC this year. The telco received a PHP1 billion ($17.2 million) green loan to upgrade its network from copper to fiber, as a fiber network consumes less electricity and has a lower carbon footprint.
In May 2024, PLDT also secured a PHP4 billion ($68.9 million) green loan from Metrobank – its first from a local financial institution – which was earmarked for the expansion of its fiber infrastructure nationwide.
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