Northern Arc Capital facilitates external funding for Asirvad Microfinance

Our Bureau Chennai | Updated on September 14, 2020

The funds will be disbursed to Asirvad in three stages   -  /iStockphoto

ECB worth ₹220 crore was subscribed by Germany’s Invest in Visions GmbH

Leading debt platform Northern Arc Capital on Monday announced that it has facilitated external commercial borrowing (ECB) of €25 million (close to ₹220 crore) for Asirvad Microfinance.

The ECB was subscribed by Germany-based social impact fund, Invest in Visions GmbH at the advice of impact-focused investment manager, Agents for Impact GmbH (AfI).

In a press release, Northern Arc Capital said the funds will be disbursed to Asirvad in three stages of which €5 million has already been disbursed. The funds will be utilised by Asirvad to address the liquidity shortage faced by women borrowers from lower income households.

“This transaction is a testament to Northern Arc’s ability to add value to clients even during the toughest of times,” Bama Balakrishnan, Chief Operating Officer of Northern Arc Capital, was quoted in the statement.

“These funds will help Asirvad in furthering our mission of creating an inclusive India, by extending credit to the micro-borrowers. As India continues to weather the unprecedented Covid-19 pandemic, Asirvad’s main focus will be to empower women in the under-served regions,” Raja Vaidyanathan, MD and CEO of Asirvad Microfinance, was quoted as saying.

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Published on September 14, 2020
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