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Grab bags US$700m financing, partners SMRT to build region's 'largest car rental fleet'
RIDE-HAILING company Grab on Friday announced it has secured debt facilities of up to US$700 million and signed an exclusive partnership with SMRT to build the "largest and most advanced (rental) fleet in Singapore".
The debt facilities are provided by "leading global and regional banks", says Grab, without naming any financial organisations, and will be used to create a car rental programme with "favourable rental terms and conditions", with the aim of having the largest car rental fleet in South-east Asia by the final quarter of 2018.
SMRT will make its current and future taxi and private car fleet management capabilities exclusively available to Grab, in addition to its entire network of taxis and Strides private-hire cars.
Grab says drivers who rent vehicles through Grab's car rental business - GrabRentals - will enjoy competitive vehicle rental and maintenance rates, have access to commercial vehicles, and benefit from SMRT's fleet management capabilities.
"This record-breaking debt financing round clearly demonstrates high confidence in our business model and market leadership from several of the world's leading banks. Now with over 72 per cent market share in the region, we will further consolidate our unassailable market lead through the largest car rental programme in South-east Asia," said Ming Maa, Grab's president.
Lim Kell Jay, head of Grab Singapore, said: "Grab is on track to build Singapore's largest and most advanced commercial fleet. We are thrilled to deepen our partnership with SMRT, given their strong fleet management capabilities for hybrid vehicles.