Grab, a Singaporean tech company, has paid off outstanding debt worth US$600 million that was set to mature in 2026. The company used its substantial cash reserves, reporting US$6.5 billion in cash liquidity in its latest earnings report. According to a recent Bloomberg report, the company’s current debt under its term loan has been reduced to US$517 million.
In the early months of 2021, Grab secured a US$2 billion loan from JP Morgan along with additional support from Barclays, Deutsche Bank, HSBC, Mizuho Bank, Mitsubishi UFJ Financial Group & Standard Chartered. As the lead bookrunner, JP Morgan oversaw the US$2 billion term loan facility and an additional US$200 million in other bank debt for the loan.
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In the fourth quarter of 2022, Grab witnessed an astounding upturn in revenue to reach US$502 million, an impressive 310% increase. Peter Oey, Grab’s CFO, declared in the earnings release that the company is on track to hit adjusted EBITDA breakeven within Q4 2023 – which is way ahead of its prior prediction for attaining it by H2 2024.
Grab’s CFO, Peter Oey, stated in the Bloomberg report that the company has no current plans for further debt repurchases or prepayment. The repayment of the outstanding debt suggests that the company is in a financially stable position and has the cash reserves to make strategic investments and acquisitions to support its growth plans.
Overall, Grab’s recent debt repayment is a positive sign for the company’s financial health and reflects its commitment to achieving sustainable growth in the future. The company’s ability to prepay outstanding debt is likely to boost investor confidence and help to attract additional investment in the company.
