Northern Arc raises $25 m in debt financing from Dutch improvement financial institution


Within the final 12 months, Northern Arc has attracted debt financing from an array of worldwide DFIs and influence buyers

Digital debt platform Northern Arc on Friday mentioned it has acquired $25-million debt financing from FMO, the Dutch improvement financial institution and one of many world’s main influence buyers. That is the fourth transaction in a sequence of large-scale investments lately made by world improvement monetary establishments and influence buyers in Northern Arc.

Within the final 12 months, Northern Arc has attracted debt financing from an array of worldwide DFIs and influence buyers corresponding to US Worldwide Improvement Finance Company, Asian Improvement Financial institution and Calvert Impression Capital. The funds raised up to now have been instrumental in enabling Northern Arc to supply finance to micro-loan debtors and SMEs in India. The newest funding from FMO will likely be utilised for on-lending to monetary establishments that target ladies debtors, micro
entrepreneurs and SMEs.

Microfinance debtors in each city and rural areas will likely be key beneficiaries of FMO’s funding. The loans will play an vital position in offering credit score to under-banked households and small companies. Equally, top quality NBFCs that lend to micro entrepreneurs and SMEs with emphasis on small ticket sizes may even profit from the ability.

Bama Balakrishnan, COO, Northern Arc, mentioned, “Outlined by an engagement spanning over eight years, Northern Arc and FMO are pure companions in furthering the reason for monetary inclusion in India. With a shared philosophy of catering to debtors onerous hit by Covid-19 pandemic, the ability from FMO is well timed and would particularly be used for lending to ladies, micro entrepreneurs and SMEs.”

Huib-Jan de Ruijter, chief funding officer at FMO, mentioned: “Northern Arc acts as catalyst to NBFCs with out efficient entry to capital markets. The brand new transaction suits into FMO’s ambition to speed up monetary inclusion with a spotlight in direction of women-run companies and (M)SMEs. With this transaction, FMO helps a superb accomplice who continues to service its purchasers throughout these difficult Covid-19 occasions.”

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