A non-banking finance company (NBFC) named Northern Arc Capital has announced raising $50 million through the sale of bonds to FMO, a Dutch bank for the development of small businesses.
The non-banking lender with headquarters in Chennai stated in a news statement that it will utilise half of the revenues to support women entrepreneurs and Micro, Small and Medium Enterprises (MSMEs).
The statement continued, "The facility's long-term nature will let Northern Arc provide tailored loan solutions to these consumers both directly and through partners."
“They (Northern Arc Capital) are fully committed to increasing financial inclusion and reducing inequalities with an emphasis on women-owned businesses and MSMEs, in full alignment with our mandate. Through our latest partnership with Northern Arc, we can therefore support the business development across India , in line with our updated strategy towards 2030,” says, Huib-Jan de Ruijter, Chief Investment Officer at FMO.
According to Northern Arc, the money raised will be used to advance three crucial SDGs, including SDG 8 (Decent Work and Economic Growth), SDG 5 (Gender Equality), and SDG 10. (Reduced Inequality).
Ashish Mehrotra, MD & CEO of Northern Arc Capital said, “As a pioneer in the space we work in, we have become the preferred port of call for many global DFIs (development finance institutions). Our diligence frameworks and processes, underpinned by technology and data science, are trusted by some of the world’s most seasoned investors and have been validated by a decade-long track record.”
