The Philippines’ leading integrated telecommunications network PLDT Inc. secured a PHP1.0bn Green Loan facility from HSBC Philippines (HSBC) to partially fund the ongoing nationwide modernization and expansion of its fiber network supporting internet delivery platforms such as fiber fixed broadband, mobile data services, and carrier-grade WiFi.
This is HSBC’s first green loan facility to a Philippine-based telecom company.
The intended use of loan proceeds aligns with the Green Loan Principles, specifically on achieving energy efficiency. Studies show that compared with previous technologies, fiber cables generate less heat and no longer require cooling systems, thus, very minimal energy is lost to the environment.
The upgrade of the network to fiber and the resultant efficient operations support the PLDT Group decarbonization roadmap that aims to reduce its Scope 1 and Scope 2 greenhouse gas emissions by 40% by 2030, coming from a 2019 baseline. To support this ambitious target, the group is actively exploring the integration of renewables, green technologies, and various energy optimization initiatives.
Danny Yu, chief financial officer and chief risk management officer, of PLDT Inc. said, “The availability of sustainable financing facilities will help PLDT’s commitment to ensuring long-term profitability by doing business responsibly. We are pleased to start this journey with HSBC and anticipate further expanding our sustainable financing portfolio with other sustainability projects.”
“PLDT’s first-ever Green Loan facility is an affirmation that our efforts to pursue the twin goals of energy efficiency and reduced carbon emissions are appreciated and supported by the financial community. We are thankful to HSBC for helping PLDT carry out our commitment of stewardship of the planet for the next generation,” said chief sustainability officer Melissa Vergel De Dios.
As of end-December 2023, the company has over 1.1 million cable kilometers of fiber infrastructure, consisting of over 0.2 million cable kilometers of international fiber and over 0.9 million cable kilometers of domestic fiber; further narrowing the digital divide; enabling a fast and reliable internet experience for its customers.
The Bangko Sentral ng Pilipinas has expressed its intention to vigorously promote the adoption of sustainable finance principles within the domestic banking system as part of its advocacy against environmental degradation as established at the 26th United Nations Climate Change Conference of Parties (COP26).