NORTHERN ARC CAPITAL LIMITED
Status: Approved investmentWhy disclosure?
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In case of questions, please contact us at disclosure@fmo.nl
Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
Northern Arc Capital Limited (formerly known as IFMR Capital Finance Limited) is a Non-Banking Finance Company incorporated in 2008 that provides access to debt for under-banked individuals and businesses in India. Through a combination of capital, products and partnerships, Northern Arc and its subsidiaries have created a platform that connects millions of borrowers to mainstream debt investors. Since inception, Northern Arc has enabled over USD 10 billion of financing to over 180 partner institutions through 125 plus reputed domestic and global investors.
What is our funding objective?
The proposed funding will be used for senior facilities to small and medium NBFCs and MFIs to be on-lent to micro-entrepreneurs, women owned MSMEs and SMEs (with a ticket size of less than USD 40k).
Why do we fund this investment?
The proposed facility provides long term funding for MFIs and NBFCs in India which have limited access to term funding, accentuated by the challenging Covid -19 times. By investing in Northern Arc, FMO will support entrepreneurship and innovation and encourage the formalization and/or growth of SMEs and microenterprises.
What is the Environmental and Social categorization rationale?
Northern Arc is a FI-B client. No exposure to activities on FMO’s exclusion list or IFC-PS triggered transactions. All transactions are screened in line with Northern Arc’s exclusion list and in adherence to local law.
More investments
| Date | Total FMO financing |
|---|---|
| 6/11/2024 | INR 6200.00 MLN |
| 9/19/2022 | INR 3950.00 MLN |
| 4/5/2024 | INR 1000.00 MLN |
| 9/19/2022 | INR 1000.00 MLN |
| 8/11/2017 | INR 570.00 MLN |
- Website customer/investment
- https://www.northernarc.com/
- Region
- Asia
- Country
- India
- Sector
- Financial Institutions
- Effective date
- 3/16/2021
- Total FMO financing
- INR 1800.00 MLN
- Funding
- FMO NV
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Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - B