Northern Arc Secures USD 65 Mn for Maiden Climate Fund with Backing from DFC and OeEB The fund, aimed at growth-stage startups, will focus on sectors including solar energy, e-mobility, sustainable agriculture, and the circular economy to bridge critical funding gaps in India's climate finance landscape.
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Northern Arc has secured USD 65 million in debt commitments for its inaugural Climate Fund through its fund management arm, Northern Arc Investments IFSC Trust.
This financing includes USD 50 million from the United States International Development Finance Corp (DFC) and USD 15 million from the Development Bank of the Republic of Austria (OeEB).
The fund, aimed at growth-stage startups, will focus on sectors including solar energy, e-mobility, sustainable agriculture, and the circular economy to bridge critical funding gaps in India's climate finance landscape.
Ashish Mehrotra, Managing Director and CEO, Northern Arc, said, "The significant investment from DFC and OeEB reinforces our ongoing commitment to revolutionise climate finance and transform the financial landscape for all households and businesses in India."
"By channelling these funds into green projects across our focus sectors of MSME, affordable housing, vehicle finance, agriculture finance, microfinance, and consumer finance, we aim to create a cascading effect that promotes sustainable development," he added.
In addition to the Climate Fund, Northern Arc launched a Category II AIF fund, the 'Finserv Fund,' in October through its subsidiary Northern Arc Investment Managers (NAIM).
Targeting a corpus of INR 1,500 crore with a greenshoe option of INR 500 crore, this fund further strengthens its diverse financing portfolio.
With an asset base of INR 15,121 crore as of September 30, Northern Arc is backed by notable investors like Sumitomo Mitsui Banking Corporation, LeapFrog, and 360 ONE.
