Local telco PLDT said on Wednesday, Oct. 23, that it has secured its first social loan – in the form a P2-billion facility from HSBC Philippines – to finance its broadband expansion in underserved 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 said the 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.
This initiative also aligns with the government’s call for the telecommunications industry to focus on enhancing connectivity in GIDAs. As of mid-2024, PLDT said 767 GIDAs have been connected to its fiber infrastructure.
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, the telco said.
PLDT chief sustainability officer Melissa Vergel de Dios said: “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.”
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.
