Northern Arc Capital raises Rs 2 billion from Dutch Development Bank

Northern Arc Capital, a non-banking financial company (NBFC), has raised Rs 2 billion from the Dutch Development Bank (FMO) by issuance of INR-denominated non-convertible debentures (NCDs).

The NCDs, issued in two tranches of Rs 1 billion each, are rated A+ by ICRA.

One tranche has been structured as a “green bond” and will be utilised exclusively for green on lending.

This is the first green bond issued in the Indian impact investing space.

Northern Arc Capital will dedicate the Rs 1 billion tranche to fund NBFCs that in turn finance the purchase of solar lamps, clean cooking stoves, electric and cleaner fuel vehicles, and