Grab closes upsized US$2b term loan facility

SOUTH-EAST Asian ride-hailing giant Grab Holdings announced on Monday that it has closed a US$2 billion loan facility, up from the original US$750 million.

The term loan was upsized after strong interest from investors, Grab said in a press statement, adding that the interest margin rate was lowered by 100 basis points from the original launch guidance to 450 basis points over Libor (London Inter-Bank Offered Rate).

Structured as a five-year term loan B, this makes it the largest term loan B facility in the Asian technology sector.

Grab said that the loan would be used to finance corporate activities and diversify its financing resources.

While it started out as a ride-hailing service provider, Grab has evolved into a multi-faceted business, having obtained a digital banking licence in Singapore just two months ago.

"I am deeply encouraged by the trust placed in us by investors who believe in our mission and recognise the value of our super app platform, as we continue making consistent progress in achieving our growth and sustainability milestones," said Anthony Tan, group chief executive officer and co-founder of Grab.

"With their support, we will invest in building a long-lasting, multi local services business, so that millions of South-east Asians can support their families and improve their lives with our everyday services."