Singapore-headquartered Grab is seeking a loan of up to $2 billion to support its potential acquisition of Indonesia's GoTo, according to Bloomberg News sources.

The report indicates that the bridge loan could have a term of about 12 months, with discussions between Grab and banks still in the early stages.

The U.S.-listed ride-hailing and food delivery company is also considering a bond or equity offering after securing the bridge loan.

GoTo, which operates the ride-hailing and food delivery platform Gojek, declined to comment on the matter. Grab did not immediately respond to requests for comments.

GoTo reiterated that there was no agreement with any party regarding a potential transaction, following reports of Grab advancing its plans to acquire it.

Merger discussions between Grab, backed by Uber, and GoTo have been sporadic and have not led to a deal, primarily due to competition concerns surrounding a merger of two major Southeast Asian players.

Singapore's competition watchdog noted that it had not received any notification from either company regarding the proposed merger.