Northern Arc facilitates $29.7m debt for India’s Asirvad Microfinance

Photo: Reuters

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.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.