Northern Arc Capital, GAWA Capital Partners raise Rs 106 cr for NBFCs

A pooled bond structure is backed by a partial guarantee; enhancing the credit rating for the loans and lowering the cost of borrowing

Northern Arc Capital, a debt platform for NBFCs, has structured and co-invested in a Rs 106 crore pooled bond with Spanish impact investment fund, Magallanes Impacto.

The fund is advised and managed by GAWA Capital Partners, a leading impacting investing firm in Spain.

This is the first debt transaction in India for both GAWA Capital and Magallanes Impacto. The pool bond issuance will give the investors exposure to financial inclusion-focused NBFCs in India, across education finance, commercial vehicle finance and MSME finance, according to a press release.

The entities that issued the underlying bonds were ASA International India, Aye Finance, Kanakadurga Finance Limited