Northern Arc Capital Limited (NACL) is an Indian non-banking financial institution specialized in financial inclusion. Its objective is to connect microfinance institutions and other players in financial inclusion with investors, so that they can develop their activities and provide access to financial services for millions of financially excluded people.
The project involves the allocation of a USD 25m senior debt to finance Northern Arc’s client institutions. The use of the funds will be earmarked for microfinance, microenterprises and SMEs.
The project will increase access to financing for 325 SMEs and over 21,000 micro-borrowers in India.
At least 35% of Proparco’s financing will be earmarked for microfinance institutions whose microcredits only target women. In this respect, the project is eligible for the 2X Challenge initiative, which was launched by G7 Development Finance Institutions to promote investments that contribute to gender equality in developing and emerging economies.
Finally, the project will support 34,000 jobs in the SMEs and microenterprises financed by Proparco’s loan to NACL.
This information is given at the time of signature, without prejudice to any developments in the operation/project