Grab prepays $600m in debt

Grab has prepaid US$600 million in outstanding debt set to mature 2026, Bloomberg reported.

The Singapore-born tech giant completed the transaction last week, making use of its healthy cash position. In its most recent earnings report, the super app said it has US$6.5 billion in cash liquidity.

According to the report, Grab’s existing debt under the term loan is down to US$517 million.

In February 2021, Grab secured a term loan facility of US$2 billion. JP Morgan acted as lead bookrunner, while Barclays, Deutsche Bank, HSBC, Mizuho Bank, Mitsubishi UFJ Financial Group, and Standard Chartered were joint bookrunners.

“At this point, we do not have plans for further debt repurchases or prepayment,” Grab CFO Peter Oey told Bloomberg.

In addition to the US$2 billion, Grab has roughly US$200 million in other bank debt.

See also: Grab’s financial health in 9 charts

The development comes after Grab reported a 310% jump in revenue to US$502 million in the fourth quarter of 2022. In its earnings release, CFO Peter Oey said that the company now aims to hit adjusted EBITDA breakeven within Q4 2023 – sooner than its previous projection of the second half of 2024.