Shriram Transport Finance Raises INR 350 Cr Debt Funding From Northern Arc

First-time truck buyers, small road transporters, and driver turned truck owners will be benefitted from the proceeds of this transaction

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By Prabhjeet Bhatla


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Digital debt platforms Northern Arc, on Friday, announced that it has concluded an INR 350 crore market-linked debentures transaction with Shriram Transport Finance (STFC).

STFC is one of the largest asset financing NBFCs for the commercial vehicle industry in the country, partnering with small truck owners for all their assets-related needs. This is the latest in a series of MLD transactions structured, executed, and invested in by Northern Arc, through which it has facilitated debt funding for its partners across MSME financing, CV financing, and gold loans.

"The transaction exemplifies Northern Arc's ability to create value for partners across sizes and credit ratings. Through customized product solutions, we have been able to evince the interest of new investors to our sectors and partners," said Bama Balakrishnan, chief operating officer, Northern Arc.

The issuance was subscribed by multiple reputed capital market investors. As part of its commercial vehicle finance segment, Northern Arc has focussed on the financing of used CVs that cater to the needs of driver-turned-owners, first-time users, first-time buyers, and small road transporters. These customers, who have been impacted due to the pandemic, will benefit from the proceeds of the transaction. Shriram Transport Finance's ability to reach these customers and enable access to credit for borrowers at the grassroot level will ensure substantial economic and social impact, the establishment shared.

"It was a delight to collaborate with the Northern Arc team on our largest tranche of MLD issuance. Northern Arc brings in-depth knowledge of the market with innovative products and unparalleled reach among investors," added Parag Sharma, joint managing director, and chief financial officer, Shriram Transport Finance.

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