Indian debt financier Northern Arc Capital announced on Monday that it has facilitated external commercial borrowing (ECB) worth $29.74 million (close to Rs220 crore) for Asirvad Microfinance, a subsidiary of Manappuram Finance Ltd.
The ECB was subscribed by Germany-based social impact fund Invest in Visions GmbH, which was advised on the transaction by investment manager Agents for Impact GmbH. The funds will be disbursed to Asirvad in three stages, of which €5 million has already been disbursed, Northern Arc Capital said in a statement.
The funds will be utilised by Asirvad to address the liquidity shortage faced by women borrowers from lower-income households.
“These funds will help Asirvad in furthering our mission of creating an inclusive India, by extending credit to 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, said.
Northern Arc said it has facilitated Rs500 crore worth of loans for Asrivad in the last five months from several investors, including PSBs, multinational banks, SFBs domestic and international DFIs.
Asirvad has disbursed over Rs20,000 crore to over 1.5 crore customers from low-income segments of India to date. It was acquired by Manappuram Finance Limited in February 2015. At that time, the company’s assets under management (AUM) was around Rs300 crore.