Northern Arc Capital Raises $75 Million from FMO for Financial Inclusion

Non-bank lender Northern Arc Capital has secured $75 million in debt from Dutch development bank FMO via senior secured, non-convertible debentures. This new funding, alongside prior contributions from IFC, aims to foster inclusive economic growth by investing in retail micro-loans, MSME loans, and green loans over a five-year tenure.

Non-bank lender Northern Arc Capital has secured a significant financial boost, raising $75 million from the Dutch entrepreneurial development bank FMO. The transaction, executed through the issuance of senior secured, listed non-convertible debentures (NCDs), brings FMO's total exposure to the lender to $125 million.

This recent funding follows a $40 million raise from IFC earlier in April. According to Northern Arc Capital, the funds will be strategically deployed in retail micro-loans, MSME loans, and green loans. The company's managing director and chief executive officer, Ashish Mehrotra, emphasized that the capital infusion would contribute to fostering inclusive economic growth and environmental sustainability.

These debentures will be listed on the BSE and carry a tenure of five years, underscoring the company's commitment to long-term financial inclusion and sustainable economic initiatives.

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