Northern Arc Capital Raises INR 100 Cr Debt From SMBC The proceeds will be used by Northern Arc Capital to provide financing solutions to MSMEs and small-scale agri-businesses across the country
By Prabhjeet Bhatla •
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Northern Arc Capital, a platform in the financial services sector, today on Wednesday announced it raised INR 100 crore debt from one of Japan's largest banks, Sumitomo Mitsui Banking Corporation (SMBC).
Northern Arc Capital will use the proceeds to cater to the credit demands of small enterprises and agri-businesses. The transaction aligns with the company's ESG goal of creating sustainable impact by providing efficient and reliable debt finance to under-served businesses.
"We are excited to deepen our partnership and engagement with one of the world's premier banking institutions. This transaction will further deepen Northern Arc's foray into retail lending through partnerships," said Kshama Fernandes, managing director, and chief executive officer, Northern Arc Capital.
Aligned with SMBC's commitment to making sustainability a reality for its stakeholders and the next generation, this investment is a complementary move supporting the bank's efforts in furthering its Sustainable Development Goals (SDG) goals in India.
"We are pleased that our strategic partnership with Northern Arc Capital has evolved and deepened amid the rapidly changing environment and over the years, supported SMBC in contributing positively to the attainment of SDGs in India," added Toshitake Funaki, chief executive officer, SMBC India's.
Since 2009, Northern Arc Capital has enabled financing for Originator Partners who have impacted over 54 million lives across India. Since the onset of the COVID pandemic, the debt platform has raised funds from reputed international investors including JICA, USDFC, ADB, and FMO.
