Grab seeks $ 750 million term loan, after 70% rise in income
Southeast Asian food transportation and delivery services company Grab is seeking a term loan of US $ 750 million, a condition sheet said on Monday after it reported that total net sales group had jumped about 70% year-over-year in 2020 and recovered comfortably. above prepandemic levels.
“In addition, we have met our growth and profitability targets, and achieved several new milestones,” said Ming Maa, president of Grab, in a company newsletter.
Hours after the update, Grab and one of its affiliates were looking for a five-year $ 750 million general-purpose corporate loan, according to a terms sheet viewed by Reuters.
Grab declined to comment on the conditions sheet.
Backed by global investors including Softbank Group Corp, Grab has grown from being a ride-sharing app operator to a one-stop-shop for services such as food delivery, payments and insurance, helping the company to become Southeast Asia’s most valuable start-up with a valuation of over $ 15 billion.
“We continued to be disciplined in spending and cautious in managing our shareholder capital, with a reduction in monthly EBITDA (earnings before interest, taxes, depreciation and amortization) expenses of around 80% over the past 12 months. past months, ”Maa said.
Grab said in October that the group’s third-quarter income rose to more than 95% of pre-coronavirus levels and its food business accounted for more than 50% of income.
The company’s food delivery business, in which net sales nearly tripled year-over-year in the third quarter, is expected to break even by the end of 2021, a- he said on Monday.
Sources said investors in Grab and Indonesian rival Gojek support a merger of the two, but a deal is far from final. The two companies have expressed their strengths.
- Reporting by Anshuman Daga, additional reporting by Aradhana Aravindan, edited by Mark Potter and David Goodman, Reuters.