Digital debt financing platform, Northern Arc Capital, on Wednesday announced that it has raised ₹100 crore in debt from leading Japanese bank Sumitomo Mitsui Banking Corporation (SMBC).
In a press release, the Chennai-based non-banking finance company (NBFC) said that it will use the proceeds to cater to the credit demands of small enterprises and agri-businesses.
It also added that the transaction aligns with the company’s ESG goal of creating sustainable impact by providing efficient and reliable debt finance to underserved businesses.
“We are excited to deepen our partnership and engagement with one of the world’s premier banking institutions. This transaction will further deepen Northern Arc’s foray into retail lending through partnerships,” Kshama Fernandes, MD and CEO of Northern Arc Capital said in the release.
SMBC is Japan’s second largest and the world’s fourteenth largest bank by assets, with a presence in over 41 markets globally.
“We are pleased that our strategic partnership with Northern Arc Capital has evolved and deepened amid the rapidly changing environment and over the years, supported SMBC in contributing positively to the attainment of SDGs in India,” said SMBC India’s CEO Toshitake Funaki.