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Grab Closes US$2 Billion Term Loan Facility

Grab Closes US$2 Billion Term Loan Facility


Grab announced today the successful close of its first senior secured term loan facility, after securing commitments from international institutional investors. The facility is structured as a five year term loan B with a principal amount of US$2 billion. 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 to Grab 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.

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.”

The term loan facility will allow Grab to:

Strengthen its liquidity. The proceeds from the term loan will further enhance Grab’s well capitalized position, and support its healthy trajectory, as it continues to strengthen its super app ecosystem to support Southeast Asia’s daily essential consumer needs.

Diversify its financing sources. Since its founding, Grab has enjoyed significant support from its shareholders. The term loan facility will help broaden Grab’s sources of financing and establish a long-term, diversified capital structure.
JP Morgan served as the lead bookrunner while Barclays, Deutsche Bank, HSBC, Mizuho, MUFG and Standard Chartered acted as joint bookrunners.