Singaporean ride and delivery firm Grab Holdings Ltd. is in talks to raise a loan of as much as $2 billion to back its potential takeover of Indonesia-based rival GoTo Group Inc., according to people familiar with the matter.

Grab stock up 2.6% in overnight trading on the news.

The so-called bridge loan could have a tenor of about 12 months, said the people, who asked not to be identified discussing private matters. Talks with banks are in early stages and details could be subject to change, the people added.

A GoTo spokesperson declined to comment, while Grab didn’t respond to emails and messages requesting comment.

Grab’s transaction comes amid a busy time for dealmaking as valuations become more attractive and rainmakers scour for opportunities in Asia. This translates into a strong M&A financing pipeline, potentially boosting the region’s loan market that is set to recover in 2025 from a three-year drop.

Blackstone Inc. is tapping Citigroup Inc. to raise at least $200 million-equivalent to back its purchase of South City Mall in India’s Kolkata, while Advent International is seeking an around $300 million-equivalent loan for its acquisition of contact lens maker Ginko International’s China operations.

Grab’s envisioned capital-raising suggests the deal is advancing, after a period of hesitation that stalled potentially one of the more significant Southeast Asian tech acquisitions in years. The company, which is backed by Uber Technologies Inc., is moving ahead with due diligence and is in talks about the structure of a deal that could fetch more than $7 billion, Bloomberg reported last week.

Grab is also considering a bond or equity take out after the firm secures the bridge loan, said one of the people. Still, the deal is dependent on the successful acquisition of GoTo, the people added.