Philippines Long Distance Telephone Company (PLDT) has secured a green loan from Metropolitan Bank & Trust Co. (Metrobank) worth 4 billion pesos ($69 million).
The company confirmed the loan agreement in a disclosure to The Philippine Stock Exchange earlier this week.
It's the company's first green loan secured from a local financial institution, and second green loan in total, after it secured 1 billion pesos ($17.4m) from HSBC Philippines in March 2024.
Proceeds from the loan will be used toward expanding PLDT's fiber footprint, as it seeks to "narrow the country's digital divide, but also ensure a fast and reliable internet experience facilitated by an energy-efficient network."
“PLDT’s active participation in the growing domestic market of sustainable finance is a demonstration of our adherence to global best practices in pursuit of sustainable profitability," said Danny Yu, chief financial officer and chief risk management officer, PLDT.
"We are encouraged by the financial community’s support of the Bangko Sentral ng Pilipinas’ advocacy for sustainable financing as we continue to explore various ways to green our operations. Our partnership with Metrobank reinforces our commitment to broaden our sustainable financing portfolio.”
PLDT noted that fiber-optic technology is crucial for developing its energy-efficient network, stating that it consumes "significantly less energy than traditional copper-based infrastructure."
It hailed the technology as critical as it looks to reduce operational costs, while it aligns with PLDT Group’s decarbonization roadmap by minimizing energy usage.
The roadmap aims to reduce its Scope 1 and Scope 2 greenhouse gas emissions by 40 percent by 2030, coming from a 2019 baseline.
“Securing another Green Loan facility for PLDT showcases our commitment to integrate sustainability in every facet of our operations, and underscores our holistic approach to environmental stewardship and responsible business practices," added Melissa Vergel de Dios, chief sustainability officer, PLDT. "Together with the financial community’s support, we can drive more meaningful change and collectively build a sustainable future for future generations."
PLDT, which is the biggest telco in the Philippines with more than 60 million mobile subscribers, reported it had more than 1.1 million cable kilometers of fiber infrastructure at the end of March.
Yesterday, the telco confirmed it is in talks to sell a stake in its data center business, following reports earlier this week it was looking to sell a 49 percent stake.
The company is seeking a valuation of more than $1 billion for its data center portfolio but aims to retain at least 51 percent of the unit. PLDT is in talks with multiple parties, including its own shareholder Japan’s NTT, which owns around 25 percent of the Filippino telco.
