Chennai-headquartered digital debt platform Northern Arc on Friday announced that it has concluded a Rs 350-crore industry-linked debentures (MLD) transaction with Shriram Transport Finance Company (STFC). STFC is one of the biggest asset financing NBFCs for the industrial automobile business in the nation, partnering with tiny truck owners for all their assets-connected desires.
This is the most current in a series of MLD transactions structured, executed and invested in by Northern Arc, by means of which it has facilitated debt funding for its partners across MSME financing, CV financing and gold loans.
Northern Arc mentioned the issuance was subscribed by various reputed capital industry investors. As component of its industrial automobile finance segment, Northern Arc has focused on the financing of utilized CVs that cater to the desires of driver-turned owners, 1st-time customers, 1st-time purchasers and tiny road transporters. These prospects, who have been impacted due to the pandemic, will advantage from the proceeds of the transaction. STFC’s capability to attain these prospects and allow access to credit for borrowers at the grassroots level will make sure substantial financial and social influence.
Bama Balakrishnan, COO, Northern Arc, mentioned, “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.”