It was previously said that Grab raised funds to acquire Indonesian competitor GoTo, but Grab pointed out at the time that the two sides had not had any discussions at the moment and had not signed any binding agreement.
Grab Holdings stated that the offering is expected to end on June 13, when it released the pricing of the bonds on the United States Tuesday (June 10).
The bonds expired on June 15, 2030. The initial conversion ratio is that the bonds with a principal of US$1,000 can be converted into 152.6252 A shares, with a conversion price equivalent to approximately US$6.55 per A shares, which is about 40% higher than Grab's closing price at US$4.68 on June 10.
On or after June 21, 2028, if the A-share share price reaches at least 130% of the conversion price in at least 20 days in 30 trading days, Grab may redeem the bonds in whole or in part. Grab can also redeem unredeemed bonds if they are less than 10% of the initial issuance.
Grab Holdings' five-year convertible bond offering increased to $1.5 billion, up from its previous estimate of $1.250 billion. This batch of bonds will be listed on the SGX and is the largest stock-linked bond issuance event.
Grab's statement stated that it intends to use the net funds raised from the issuance of the bonds for general corporate purposes, optimize strategic flexibility (which may include acquisitions) and conduct share buybacks. In addition, Grab plans to repurchase about $27,350 of A shares from some investors who purchased this batch of bonds through a $500 million stock repurchase program, with a repurchase price of $4.68 per A shares, which is the closing price of A shares on Tuesday.
On June 21, 2028, holders of this bond shall have the right to require Grab to repurchase all or part of their bonds in cash, with a repurchase price equal to 100% of the principal plus dividends and unpaid special dividends (if any).