Northern Arc completes Rs 350 cr MLD for Shriram Transport Finance

Northern Arc says it is focusing on the financing of Used CVs.

Northern Arc, a digital debt platform, said on Friday it has concluded an Rs 350 crore market-linked debentures transaction with Shriram Transport Finance. 

STFC is one of the largest asset financing NBFCs for the commercial vehicle industry in the country, working with small truck owners for assets-related needs. This is the latest in a series of MLD transactions structured, executed, and invested in by Northern Arc, through which it has facilitated debt funding for its partners across MSME financing, commercial vehicle (CV) financing, and gold loans.

Multiple capital market investors subscribed the issuance. As part of its commercial vehicle finance segment, Northern Arc has focused on the financing of Used CVs that cater to the needs of driver turned owners, first time users, first time buyers and small road transporters. These customers, who have been impacted due to the pandemic, will benefit from the proceeds of the transaction, said the company's statement. Shriram Transport Finance’s ability to reach these customers and enable access to credit for borrowers at the grassroots will ensure substantial economic and social impact.

“The transaction exemplifies Northern Arc’s ability to create value for partners across sizes and credit ratings. Through customized product solutions, we have been able to evince the interest of new investors to our sectors and partners,” said Bama Balakrishnan, COO, Northern Arc.