Grab issues 1.6 billion yuan convertible bonds

Net income from this bond issuance will be used for: general corporate purposes; optimized strategic flexibility, including potential acquisitions; synchronous repurchases; and any other share repurchases authorized by the Board of Directors.

According to a statement released by Grab's official website on Tuesday (June 10), the maturity date of this batch of bonds is June 15, 2030. Investors can choose to require the company to repurchase all or part of its notes on June 15, 2028, in cash on face value plus accrued interest.

Grab also stated in its latest statement that it plans to conduct Class A common stock repurchase transactions off-market with some notes investors through the initial underwriter or its affiliates as agents.

However, Grab's statement on Monday (9th) sent a signal that he would suspend or even suspend the original acquisition plan. Grab said that the two sides have not had any discussions at present and have not signed any binding agreement.

The private car-hailing and delivery platform Grab, a US-listed Singaporean car-hailing and delivery platform, plans to issue US$1.25 billion (about S$1.6 billion) of convertible bonds to enhance acquisition funds reserves.

According to the terms of transactions seen by Bloomberg News, the annual coupon rate for these bonds is up to 0.5%, and is paid every six months.

This synchronous repurchase is intended to help investors conduct initial hedging and is part of the "convertible bond arbitrage strategy". This repurchase will use the amount under the share repurchase plan announced by Grab in February 2024, with a repurchase limit of US$500 million.

As of March 31 this year, US$274 million has not been used in this plan. The company expects the synchronous repurchase to be held at the closing price of Grab Class A common stock on Nasdaq on Tuesday.

People familiar with the matter revealed last month that Grab is seeking to reach an agreement to acquire Indonesian GoTo in the second quarter of this year, with a transaction value of up to $7 billion.