Smart secures P2-B green loan for 5G network expansion

SMART COMMUNICATIONS, INC., the wireless arm of PLDT Inc., has obtained its first green loan worth P2 billion from Metropolitan Bank & Trust Co. (Metrobank) to support the expansion of its fifth-generation (5G) network nationwide.

“This green loan is more than a financial milestone — it demonstrates Smart’s participation in shaping a low-carbon digital future. By investing in energy-efficient technologies, we are pursuing business growth and efficiency, while being mindful of our impact on the environment,” PLDT and Smart Chief Finance and Risk Management Officer Danny Y. Yu said in a media release on Thursday.

Smart said the proceeds will be used to fund upgrades and expansion of its network infrastructure aimed at improving operational efficiency and enhancing customer experience.

A green loan is a type of financing instrument that allocates proceeds exclusively for eligible projects that promote environmental sustainability.

5G technology is designed to handle higher data traffic at faster speeds while consuming less energy per gigabyte. It can also shift to low-energy modes and optimize power use, thereby reducing greenhouse gas emissions.

“Financing plays a key role in enabling the achievement of our business and sustainability goals and in our pursuit of initiatives that contribute to our long-term growth and create value for the planet and the future generations,” PLDT and Smart Chief Sustainability Officer Melissa Vergel De Dios said.

The latest green facility follows PLDT’s P2-billion social loan secured last year to expand its fiber network and a P1-billion green loan for network upgrades and expansion.

Smart is the wireless unit of PLDT Inc. Hastings Holdings, Inc., a unit of the 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