Chennai-headquartered digital debt platform Northern Arc on Friday announced that it has concluded a Rs 350-crore market-linked debentures (MLD) transaction with Shriram Transport Finance Company (STFC). STFC is one of the largest asset financing NBFCs for the commercial vehicle industry in the country, partnering with small truck owners for all their assets-related needs.
This is the latest in a series of MLD transactions structured, executed and invested in by Northern Arc, through which it has facilitated debt funding for its partners across MSME financing, CV financing and gold loans.
Northern Arc said the issuance was subscribed by multiple reputed capital market investors. As part of its commercial vehicle finance segment, Northern Arc has focused on the financing of used CVs that cater to the needs of driver-turned owners, first-time users, first-time buyers and small road transporters. These customers, who have been impacted due to the pandemic, will benefit from the proceeds of the transaction. STFC’s ability to reach these customers and enable access to credit for borrowers at the grassroots level will ensure substantial economic and social impact.
Bama Balakrishnan, COO, Northern Arc, said, “The transaction exemplifies Northern Arc’s ability to create value for partners across sizes and credit ratings. Through customised product solutions, we have been able to evince the interest of new investors to our sectors and partners.”