Ola will bring its IPO in 2022
Ride hailing platform Ola on Thursday said it has raised $500 million in debt from international institutional investors.
- PTI
- Last Update:December 16, 2021, 2:42 pm IS
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New Delhi: Ride hailing platform Ola on Thursday said it has raised $500 million in debt from international institutional investors. The company has raised this amount through Term Loan B (TLB). Institutional investors who want higher returns and can stay invested for a longer period of time than traditional banks offer such loans. TLBs usually have a floating interest rate with a tenure of 5-7 years.
“The proposed loan issuance received a staggering response from investors with an interest and commitment of approximately USD 1.5 billion… Hopefully, that includes ride hailing, vehicle commerce, distribution. with foodstuffs, accelerated commerce and financial services,” Ola said in a statement. S&P and Moody’s ranked Ola’s first lien term loan as B- and B3 respectively, with a ‘stable’ outlook, strong entity economics and Rated behind profitability.Its market leading Indian ride hailing business.
The overwhelming response to our Term Loan B is a reflection of the strength of our business and our continued focus on improving unit economics along with rapid growth. Bhavish Aggarwal, Founder and CEO, Ola said, “At Ola, we are accelerating our journey towards building a new mobility ecosystem to help one billion people move forward in a sustainable manner. JP Morgan and Deutsche Bank acted as joint principal arrangers for this financing.
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