Ride-hailing firm Grab secures $1.5 billion in funding

Grab said a ‘significant portion’ of the new investment will be used to grow its business in Indonesia, the home base of regional rival Go-Jek. (AFP)
Updated 06 March 2019
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Ride-hailing firm Grab secures $1.5 billion in funding

  • Grab has seen its business grow rapidly since it bought US-based rival Uber’s regional ride-hailing and food business in March last year
  • Uber received a 27.5 percent stake in Grab in return

SINGAPORE: Southeast Asian ride-hailing firm Grab said on Wednesday it has secured $1.5 billion in fresh financing from a fund run by Japan’s SoftBank and will use a significant portion of it to expand in Indonesia.
Grab has seen its business grow rapidly since it bought US-based rival Uber’s regional ride-hailing and food business in March last year. Uber received a 27.5 percent stake in Grab in return.
The fresh investment from the Vision Fund of Softbank Group brings the total financing secured by Singapore-headquartered Grab over the past year to more than $4.5 billion.
The company said it is expanding its financial services and food and parcel delivery businesses, as well as adding new offerings such as on-demand video, digital health care, insurance and hotel bookings.
Grab said a “significant portion” of the new investment will be used to grow its business in Indonesia, the home base of regional rival Go-Jek, which has recently launched in Singapore.
“Grab’s Indonesian business is expanding rapidly, with revenue more than doubling in 2018,” the company said in a statement.
Toyota Motor, Hyundai Motor, Oppenheimer Funds and Microsoft Corp. are among the major investors in Grab over the past year. Softbank is owned by Japan’s richest man Masayoshi Son.
Go-Jek has won financial backing from investors including Google, Singapore’s sovereign wealth fund Temasek and Chinese Internet giant Tencent.
Southeast Asia’s ride-hailing market is expected to be worth $20 billion by 2025, according to research by Google and Temasek.


RBS says Saudi bank merger boosts its core capital

Updated 16 June 2019
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RBS says Saudi bank merger boosts its core capital

  • RBS had a 15.3% interest in Alawwal bank
  • The changes would boost the banks CET1 core capital ratio by 60 basis points

Royal Bank of Scotland (RBS) said on Sunday the completion of a merger between Alawwal bank and Saudi British Bank would lead to RBS shedding $5.9 billion of risk weighted assets and boost its core capital.
RBS, through Dutch subsidiary NatWest Markets N.V., was part of a consortium including NLFI and Banco Santander S.A. that held an aggregate 40% equity stake in Alawwal bank, the British bank said in a statement. RBS also had an interest equivalent to a 15.3% stake in Alawwal bank.
RBS said that as a result of the merger completion, it would recognise an income gain on disposal of the Alawwal bank stake for shares received in Saudi British Bank of almost $503 million and a reduction in risk weighted assets of nearly $5 billion.
RBS also said the deal would extinguish legacy liabilities of almost $377.
The changes would increase the bank's CET1 core capital ratio by 60 basis points, it said.
The merger will also help RBS to focus on its target markets, RBS chief executive Ross McEwan said in a statement.
RBS, which was rescued in 2008 with a nearly $57 billion capital injection by the British government, has been shrinking its overseas operations since the financial crisis to focus on its UK lending operations.