Northern Arc Capital raises $75-mn debt from Dutch lender FMO

Mumbai: Non-bank lender Northern Arc Capital on Tuesday announced that it has raised a debt of $75 million (Rs620 cr) from Dutch entrepreneurial development bank FMO. The money is raised through issue of senior secured, listed Non-Convertible Debentures (NCDs), according to a statement.

The transaction takes the overall exposure of the lender from the instrument to USD 125 million, the statement said. It had raised around $40 million raise from IFC earlier in April.

The funds raised will be deployed in retail micro-loans, MSME loans, and green loans, the statement said, adding that this will also help in the wish to fostering inclusive economic growth and environmental sustainability. The company aims to create a cascading effect that promotes sustainable economic growth and financial inclusion, its managing director and chief executive officer Ashish Mehrotra said.