PLDT Inc. has secured its first green loan at P1 billion from HSBC Philippines to fund the expansion and upgrade of its fiber network, the telecommunications company’s chief financial officer said on Wednesday.
“The availability of sustainable financing facilities will help PLDT’s commitment to ensuring long-term profitability by doing business responsibly,” Danny Y. Yu, PLDT’s chief financial officer and chief risk management officer, said in a stock exchange disclosure.
“We are pleased to start this journey with HSBC and anticipate further expanding our sustainable financing portfolio with other sustainability projects,” he added.
The project aims to support the company’s internet delivery platforms like fiber fixed broadband, mobile data services, and carrier-grade Wi-Fi, PLDT said.
Green loan is a form of financing allowing borrowers to use the proceeds to fund eligible green projects.
“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,” PLDT said.
The listed telecommunications company said the fiber upgrade and expansion will help PLDT to reduce its carbon emissions, moving closer to its decarbonization goal.
Fiber technology generates less energy thus allowing the company to lessen its power requirements.
“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. We are thankful to HSBC for helping PLDT carry out our commitment of stewardship of the planet for the next generation,” said Melissa Vergel De Dios, chief sustainability officer of PLDT.
To date, the company has a total of 1.1 million cable kilometers of fiber infrastructure.
At the local bourse on Wednesday, shares in the company closed P9 or 0.7% higher to end at P1,290 apiece.
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Ashley Erika O. Jose
