Chennai-headquartered Northern Arc, a financial services platform and leading player among diversified NBFCs, on Tuesday said it has concluded a Rs 300 crore market-linked debentures (MLD) transaction with Shriram City Union Finance (Shriram City), acting as a financial advisor for the deal. This was one of the largest single-tranche MLD issuances by Shriram City.
The issuance was subscribed by multiple capital market investors. Shriram City will use the proceeds to cater to the financial needs of customers across vehicle, consumer, MSME and gold finance.
Bama Balakrishnan, COO, Northern Arc Capital, said, “We are delighted to partner with Shriram City Union Finance, one of the largest, diversified and well-governed NBFCs in the country, for this landmark transaction. This unlocks deeper pools of capital, further retailising debt market investments and access. It also showcases our platform’s ability to deliver customised solutions and investor reach.”
Shriram City’s MLD paper is also available on Northern Arc’s alternative investment platform AltiFi.ai.
Krithika Doraiswamy, VP, finance, Shriram City, said, “The closure of one of our largest single-tranche MLD issuances in partnership with Northern Arc Capital coincides with an important milestone in our journey — financing of one crore two-wheelers. Our long enriching partnership with the Northern Arc team has not only brought in new investors into our folds by their wide-reaching market placement capability, but has also brought in structural efficiency to our market offerings.”