Northern Arc raises $50m debt from JICA to cater to women borrowers

For the reason that onset of the Covid pandemic, the debt platform has raised funds from reputed worldwide buyers together with USDFC, ADB, FMO and Calvert Impression Capital.

Chennai-based debt platform Northern Arc Capital on Tuesday introduced it has raised $ 50 million in exterior business borrowing (ECB) from Japanese Worldwide Cooperation Company (JICA). JICA is Japan’s governmental company that works in direction of selling financial and social development in creating international locations. This is without doubt one of the first non-public sector investments by JICA, centered on Indian monetary inclusion for ladies.

Northern Arc will use the proceeds to cater to the credit score calls for of ladies debtors or in direction of merchandise that disproportionately profit ladies. Coming within the backdrop of Covid-19, the transaction is anticipated to alleviate the social and financial influence of the pandemic. Northern Arc will present loans by way of co-financing with the USA Worldwide Improvement Finance Company (USDFC) primarily based on the power for accelerating monetary inclusion in Asia (FAIA), introduced on March 27, 2020.

Keiichiro Nakazawa, senior VP of JICA, stated: “Northern Arc Capital is a singular and necessary monetary establishment that helps funding of the Indian NBFC sector, which performs a key function in selling monetary inclusion in India. We count on extra Indian ladies to have entry to monetary providers by way of this partnership with Northern Arc. Additionally, we’re delighted that this mortgage is our first co-financing with USDFC in India.”

For the reason that onset of the Covid pandemic, the debt platform has raised funds from reputed worldwide buyers together with USDFC, ADB, FMO and Calvert Impression Capital.

Kshama Fernandes, MD & CEO of Northern Arc Capital, stated, “This transaction is proof of Northern Arc’s means to forge partnerships with and entice funding from reputed international DFIs. We’re excited to companion with JICA to additional our mission of catering to the varied credit score necessities of underserved households and companies. The utilization of proceeds might be in direction of selling ladies entrepreneurship and employment, an necessary goal space for the corporate.”