Financial services platform Northern Arc Capital today announced that it has structured and executed a ₹300 crore market-linked debentures (MLD) transaction for Shriram City Union Finance.

In a press release, the Chennai-based non-banking financial company (NBFC) Northern Arc said that the debenture issue was subscribed by multiple, reputed capital market investors.

Shriram City Union Finance will use the proceeds of the transaction to cater to the financial needs of customers across vehicle finance, consumer finance, MSME finance and gold finance.

“We are delighted to partner with Shriram City Union Finance, one of the largest, diversified and well governed NBFCs in the country for this landmark transaction. This unlocks deeper pools of capital, further retailising debt market investments and access. It also showcases our platform’s ability to deliver customised solutions and investor reach,” Bama Balakrishnan, COO, Northern Arc Capital said in the release.

Shriram City Union Finance, which is part of the Shriram Group, is India’s largest two-wheeler financer (based on the number of two-wheelers financed). The company recently achieved a milestone of financing one crore two-wheelers in India.

“The closure of one of our largest single tranche MLD issuance, in partnership with Northern Arc Capital, coincides with an important milestone in our journey - financing of 1 crore two wheelers. Our long enriching partnership with the Northern Arc team has not only brought in new investors into our folds by their wide-reaching market placement capability, but also has brought in structural efficiency to our market offerings,” Krithika Doraiswamy, Vice President, Finance, Shriram City Union Finance was quoted in the statement.

The MLD papers of Shriram City Union Finance is also available on Northern Arc’s alternative investment platform AltiFi.ai for investors.

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