Northern Arc Capital, a non-banking finance company (NBFC) focussed on under-served households and businesses, today announced raising of $50 million through bond issuance to FMO, the Dutch entrepreneurial development bank.
In a press release, the Chennai-based non-banking lender said it will use half the proceeds to serve the Micro, Small and Medium Enterprises (MSMEs) and women entrepreneurs.
“The long term nature of the facility will help Northern Arc provide customised credit solutions to these customers both directly and through partners,” it added.
“They (Northern Arc Capital) are fully committed to increasing financial inclusion and reducing inequalities with an emphasis on women-owned businesses and MSMEs, in full alignment with our mandate. Through our latest partnership with Northern Arc, we can therefore support the business development across India , in line with our updated strategy towards 2030,” Huib-Jan de Ruijter, Chief Investment Officer at FMO said, in the release.
Northern Arc said the use of proceeds will address three critical UN Sustainable Development Goals including SDG 8 (Decent Work and Economic Growth), SDG 5 (Gender Equality) and SDG 10 (Reduced Inequality).
Ashish Mehrotra, MD & CEO of Northern Arc Capital said, “As a pioneer in the space we work in, we have become the preferred port of call for many global DFIs (development finance institutions). Our diligence frameworks and processes, underpinned by technology and data science, are trusted by some of the world’s most seasoned investors and have been validated by a decade-long track record.”