Northern Arc Capital, formerly identified as IFMR Capital Finance, a non-banking finance corporation (NBFC) that offers access to debt for beneath-banked people and enterprises, announced that it has raised $10-million debt from US-based-Calvert Impact Capital, one of the world’s top influence investors through external industrial borrowing (ECB).
This is Calvert Impact Capital’s biggest debt investment in India so far. Northern Arc will deploy the funds towards on-lending to monetary institutions as properly as lending straight to retail prospects and to mid-industry corporates.
Underbanked prospects, such as low-earnings households and little enterprises, to whom credit has dried up more than the final handful of months due to the pandemic, will be a important beneficiary of the proceeds.
These borrowers will be served each straight by Northern Arc as properly as via on-lending to companion institutions. Similarly, higher-excellent NBFCs, early-stage enterprises, and little and medium enterprises (SMEs) that have sturdy organization models but are facing liquidity crunch will also advantage from this financing.
Bama Balakrishnan, COO, Northern Arc, stated, “The partnership with Calvert Impact Capital is long-term & multi-dimensional, helping both organisations achieve common goals across impact and growth. These include aiding small businesses and promoting gender equity, a cause that is strongly endorsed by both organizations…”
Calvert Impact Capital invests to develop a more sustainable and equitable planet. Their portfolio is crafted to serve sectors, geographies and populations that are frequently overlooked or underserved by standard capital markets. The most up-to-date investment in Northern Arc is properly-aligned with Calvert Impact Capital’s concentrate on rising the flow of private capital to develop positive social and environmental influence.
Daniel Ford, investment officer, Calvert Impact Capital, stated: “Northern Arc has been instrumental to strengthening Indian debt capital markets to the benefit of organizations serving underbanked populations. Today more than ever, these companies and their clients benefit from access to a diversity of funding sources and the relationship-based approach of the Northern Arc model. As an investor, we benefit from leveraging the market and credit expertise of the Northern Arc team as we put capital to work for impact in India.”