Northern Arc Capital Secures $75 Million Debt from FMO for Inclusive Growth

Northern Arc Capital has raised $75 million in debt from FMO through senior secured, listed Non-Convertible Debentures. The funds will be utilized for retail micro-loans, MSME loans, and green loans. This move aims to promote sustainable economic growth and financial inclusion.

Non-bank lender Northern Arc Capital announced on Tuesday the successful raise of $75 million in debt from the Dutch entrepreneurial development bank, FMO.

The funding was acquired through the issuance of senior secured, listed Non-Convertible Debentures (NCDs), stated a company release.

This transaction elevates the company's total exposure from the instrument to $125 million, following a $40 million raise from IFC in April.

The newly secured funds will be allocated toward retail micro-loans, MSME loans, and green loans. Additionally, the funding aims to foster inclusive economic growth and environmental sustainability, said Ashish Mehrotra, managing director and CEO of Northern Arc Capital.

The debentures will be listed on the BSE and have a tenure of five years.

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