Another green loan on the table for PLDT

MANILA, Philippines — Telco giant PLDT Inc. is planning to acquire another sustainable loan within the year, this time to help finance some of its initiatives in bridging the digital divide.

PLDT first vice president and chief sustainability officer Melissa Vergel de Dios said the telco is looking at making a follow-up loan almost similar to the one it secured from HSBC Philippines.

In March, PLDT borrowed P1 billion from HSBC through its green loan facility, marking the first time a Philippine telco tapped it.

De Dios said PLDT is evaluating funding options for some of its projects that seek to narrow the digital divide in underserved areas. Right now, the focus is to find a financier willing to extend a sustainable loan, but the difference is it will be spent on a social undertaking this time.

However, De Dios noted that sustainable financing tends to lend in huge sums. She said PLDT is hoping to obtain just a small amount to fund a specific effort of the company.

This way, PLDT can ensure compliance with the metrics that the lender will include in the terms and conditions of the sustainable loan.

The HSBC green loan PLDT obtained was allocated for the expansion and modernization of its fiber network with the objective of improving the quality of internet services nationwide.

HSBC decided to approve the green financing on the commitment that PLDT will undertake the project with minimal impact to the environment.

Citing industry studies, PLDT chief financial officer Danny Yu said fiber cables require less heat to run compared to previous technologies in connectivity. In turn, the use of fiber cables supports the telco’s push to decarbonize the business.