Northern Arc Capital, a diversified NBFC, on Wednesday said it has raised Rs 100-crore debt from one of the Japan’s largest banks, Sumitomo Mitsui Banking Corporation (SMBC).
Northern Arc Capital will use the proceeds to cater to credit demands of small enterprises and agri businesses. The transaction aligns with the company’s goal of creating sustainable impact by providing efficient and reliable debt finance to under-served businesses, according to a press release.
Since the onset of the pandemic, the debt platform has raised funds from reputed international investors, including JICA, USDFC, ADB and FMO.
SMBC India CEO Toshitake Funaki said, “We are pleased that our strategic partnership with Northern Arc Capital has evolved and deepened amid the rapidly-changing environment, and over the years supported SMBC in contributing positively to the attainment of sustainable development goals in India.”
Northern Arc has cumulatively raised over Rs 95,000 crore in funds for its clients since the inception of its platform in 2009. Its exposure is spread across 28 states and seven Union Territories as on March 31, 2021.
Kshama Fernandes, MD & CEO of Northern Arc, said, “We are excited to deepen our partnership and engagement with one of the world’s premier banking institutions. This transaction will further deepen Northern Arc’s foray into retail lending through partnerships.”