Grab Upsizes Term Loan Facility to US$2 Billion Following Strong Interest From Investorsby Fintech News Singapore February 1, 2021
Grab, a Southeast Asian superapp, announced the successful close of its first senior secured term loan facility following commitments from international institutional investors.
The term loan facility will allow Grab to strengthen its liquidity and diversify its financing sources.
The facility is structured as a five-year term loan B with a principal amount of US$2 billion. Grab said that this is the largest term loan B facility in the Asian technology sector.
The term loan was upsized from the original principal amount of US$ 750 million after strong interest from investors. The interest margin rate was also lowered by 100 basis points from the original launch guidance to LIBOR + 450 basis points.
In conjunction with the term loan, Moody’s Investors Services and S&P Global Ratings issued Grab the ratings of B3 and B-, with stable outlook, respectively. The ratings also mean that Grab is the first independently-rated technology company in Southeast Asia.
JP Morgan served as the lead bookrunner while Barclays, Deutsche Bank, HSBC, Mizuho, MUFG and Standard Chartered acted as joint bookrunners.
Anthony Tan, Group CEO & Co-Founder of Grab, said,
“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.
With their support, we will invest in building a long lasting, multi local services business, so that millions of Southeast Asians can support their families and improve their lives with our everyday services.”