The deal will fund Grab Car’s vehicle fleet.
HSBC Singapore closed Grab’s $500m five-year asset-backed syndicated facility, which has a potential upsize of $800m. The deal was 2.5 times oversubscribed, with a total of 16 bank and non-bank financial institutions participating.
“The emphasis on operating parameters instead of financial covenants, plus Grab’s reputation as a leader and one of the few technology powerhouses in Southeast Asia made this deal particularly attractive,” HSBC Singapore said in a press release.
This facility is part of the US$700m in debt financing Grab announced last October. The deal will finance the growth of Grab’s Singapore vehicle fleet. The drivers who lease the cars will then form the supply base to its Grab Car business.
HSBC acted as the sole structuring advisor, mandated lead arranger, and bookrunner of the facility.
HSBC Singapore director of structured finance Shaun Sakhrani said, “Structured finance solutions of this nature are increasingly important for non-traditional companies, in particular, start-ups operating in the digital economy. The usual corporate facilities with corporate-level covenants may not be feasible in helping these firms unlock access to the debt capital markets.”
"Grab is currently in 217 cities across Southeast Asia, and as we expand beyond ride-hailing to become the leading O2O mobile platform in the region, it is crucial that we have the financing necessary to facilitate our rapid growth,” added Grab president Ming Maa.
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