MANILA - Globe Telecom on Monday said its board of directors has approved a stock rights offer that aims to raise P32 billion for its network expansions.

Proceeds from the SRO for eligible shareholders will be used for the expansion of its mobile and broadband network as well as debt repayment, the Ayala-led telco said in a disclosure to the stock exchange.

"This marks the first time Globe will do a rights offer in the capital market in over 2 decades and shows the Principal Shareholders' confidence in the company and its plans going forward," Globe Chief Finance Officer Rizza Maniego-Eala said.

"We believe there is excitement in the market for Globe's future prospects and potential amid the massive demand for data-related services as more Filipinos are now embracing the benefits of digitalization," she added.

Globe said its products and services "are more important than ever" as connectivity becomes essential for consumers.

In Q1, Globe's data traffic grew 27 percent compared to the same period last year, partly due to the increase in smartphone penetration in the network, it added.

Globe said it has been continuously investing in its network to support demand, spending close to P250 billion in capital over the last 3 years. This year it has set a capex of P80 billion.

It has also beefed up investments in other businesses such as its fintech platform GCash which now has over 60 million registered users as of March, among others.

• GCash says milestone hit as app nets over 60 million users, 83 pct of adult Pinoys
• Globe says mobile still 'very strong'; posts record net income, revenue in Q1

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