Grab Holdings Ltd is raising US$1.25 billion through a sale of bonds convertible into stock, as the Singapore-based super app gears up for potential acquisitions and share buybacks amid a stall in merger talks with Indonesia’s GoTo Group.
The seven-year convertible bonds, maturing on June 15, 2030, will carry a coupon of up to 0.5% annually and be payable semiannually, Grab said in a statement on Monday. The bonds can be redeemed under certain conditions starting mid-2028.
The offering marks the largest US dollar-denominated convertible bond deal by a non-Chinese Asian firm since SK Hynix Inc.’s US$1.7 billion issuance in 2023. It also follows a recent uptick in equity-linked deals across Asia, particularly from China, with names like Baidu and Ping An Insurance Group tapping the market.
Grab said proceeds from the fundraising will be used to bolster its balance sheet for strategic acquisitions and to support its share buyback programme, which had US$274 million remaining as of March.
The move comes as Grab signalled a pause or potential halt in its long-discussed plan to acquire GoTo in a US$7 billion deal. Talks between the Southeast Asian rivals have been ongoing for years but have yet to produce a tie-up, due in part to anticipated regulatory scrutiny over market dominance.
Morgan Stanley, HSBC Holdings Plc and JPMorgan Chase & Co. are acting as joint global coordinators for the transaction.
Bloomberg
