PLDT Inc., the integrated telecommunications network, has secured a P1 billion Green Loan from HSBC Philippines ((HSBC), marking a significant milestone in its pursuit of sustainable development.
This financing will contribute to the ongoing modernization and expansion of PLDT’s nationwide fiber network, which forms the backbone for delivering internet services such as fiber-fixed broadband, mobile data, and carrier-grade WiFi.
“The availability of sustainable financing facilities will help PLDT’s commitment to ensuring long-term profitability by doing business responsibly,” said Danny Yu, chief financial officer and chief risk management officer, PLDT Inc. “We are pleased to start this journey with HSBC and anticipate further expanding our sustainable financing portfolio with other sustainability projects.”
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This transaction represents HSBC’s first green loan facility extended to a telecommunications company based in the Philippines. The utilization of the loan aligns closely with the Green Loan Principles, particularly focusing on enhancing energy efficiency. According to PLDT, fiber technology, being more energy-efficient than its predecessors, generates minimal heat and eliminates the need for cooling systems, resulting in reduced environmental impact.
Operational efficiency
The transition to fiber optics not only enhances operational efficiency but also supports PLDT Group’s commitment to reducing greenhouse gas emissions. By 2030, the group aims to slash its Scope 1 and Scope 2 emissions by 40%, building upon its 2019 baseline. This endeavor involves integrating renewable energy sources, adopting green technologies, and implementing various energy optimization initiatives.
By the end of December 2023, PLDT had deployed over 1.1 million cable kilometers of fiber infrastructure, comprising both domestic and international segments. This extensive network contributes to bridging the digital divide and ensuring a fast and reliable internet experience for PLDT’s customers.
“PLDT’s first-ever Green Loan facility is affirmation that our efforts to pursue the twin goals of energy efficiency and reduced carbon emissions are appreciated and supported by the financial community,” said Melissa Vergel De Dios, chief sustainability officer, PLDT.
The Bangko Sentral ng Pilipinas has affirmed its commitment to promoting sustainable finance principles within the domestic banking sector, echoing global efforts to combat environmental degradation as emphasized at the 26th United Nations Climate Change Conference of Parties (COP26).