PLDT has secured a PHP 2 billion (USD 34.4 million) social loan from HSBC Philippines. The funds will be used to finance the expansion of its fiber infrastructure in underserved and unserved communities.
Social loans are financing solutions that are implemented to generate positive social outcomes, such as improving access to affordable basic infrastructure and essential services.
In a filing with the Philippine Stock Exchange, PLDT announced that its recently secured social loan will facilitate the expansion of its fiber network infrastructure to fourth through sixth-class municipalities across the Philippines. This initiative aims to improve internet connectivity in geographically isolated and disadvantaged areas (GIDAs) that currently lack access to reliable internet services.
PLDT reported that its fiber network currently reaches 59% of the fourth through sixth-class municipalities. However, out of more than 7,000 geographically isolated and disadvantaged areas (GIDAs) in the country, only 767 have been connected to fiber.
The company has announced plans to further extend its fiber services to additional municipalities in the coming years, focusing on areas with the greatest need for improved connectivity.
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President Ferdinand R. Marcos Jr. has urged the telecommunications industry to prioritize connectivity in geographically isolated and disadvantaged areas (GIDAs) as part of a comprehensive strategy to advance the government's digitalization objectives. The emphasis has largely been on improving wireless connectivity.
In April 2024, the Private Sector Advisory Council (PSAC), created by Marcos Jr. two years ago to encourage public-private collaboration, suggested that the government set aside at least PHP 240 billion to build 35,000 new tower sites for GIDAs. However, installing these towers will also need fiber infrastructure.
According to PLDT’s Chief Sustainability Officer, Melissa Vergel de Dios, fiber will not only enhance wireless connectivity but also play a vital role in ensuring equitable access to education, healthcare, and economic opportunities for underserved communities.
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“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,” Vergel de Dios said in a statement.
HSBC Philippines’ Head of Wholesale Banking, Mimi Concha, noted that the deal represents the bank's inaugural approval of a social loan for a telecommunications company in the Philippines.
Concha emphasized that the project aims to enhance internet access for Filipinos in underserved areas, enabling them to actively engage in, and compete within, the digital economy.
This financing agreement marks PLDT's second collaboration with HSBC this year, following a PHP 1 billion (USD 17.2 million) green loan approved in March 2024. This earlier loan aims to facilitate the upgrade of PLDT's network from copper to fiber, as fiber networks are considered more environmentally friendly due to their lower electricity consumption compared to copper.
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