PLDT Inc. said Wednesday it obtained a P2-billion social loan facility from HSBC Philippines to expand internet connectivity and bridge the digital divide in underserved and unserved areas of the Philippines.
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 would 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).
It said that as of June 2024, the Philippine Statistics Authority classified 729 municipalities as fourth to sixth class, with PLDT’s fiber network covering 59 percent of these areas.
The company outlined plans to extend fiber services more municipalities in the coming years, prioritizing areas most in need of connectivity to enable communities to benefit from access to data and the internet.
It said that as of mid-2024, 767 GIDAs were connected to PLDT’s fiber infrastructure, ensuring that even the most remote communities have digital access.
PLDT said to complement GIDA targets 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 integration of PLDT’s sustainability agenda in the business is evident even in the way we fund our projects. We are happy to find a like-minded partner in HSBC who is helping to fund our efforts to narrow the digital divide and connect unconnected communities,” said PLDT chief finance and chief risk officer Danny Yu.
PLDT chief sustainability officer Melissa Vergel de Dios said the company’s 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,’ De Dios said.
HSBC Philippines head of wholesale banking Mimi Concha said the bank is honored to support PLDT in their endeavor to provide better connectivity infrastructure for the underserved markets across the Philippine archipelago.
“With this being HSBC’s first social loan facility to a telco company in the Philippines, it’s noteworthy that 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,” he said.
