Shriram Transport Finance Company Ltd, India’s largest player in commercial vehicle finance, has raised Rs 350 crore ($48.3 million) in a debt funding deal structured and executed by non-bank lender Northern Arc Capital.
Cash proceeds will be used to support first-time truck buyers, small road transporters and drivers-turned-truck owners who have been impacted by the pandemic, Northern Arc Capital said in a statement.
“The transaction exemplifies Northern Arc Capital’s ability to create value for partners across sizes and credit ratings. Through customised product solutions, we have been able to evince the interest of new investors to our sectors and partners,” said Bama Balakrishnan, operations chief of Northern Arc Capital.
Chennai-based Northern Arc Capital (Formerly known as IFMR Capital) is a Non-Banking Finance Company that provides access to debt for under-banked individuals and businesses in India.
Northern Arc Capital is backed by private equity investors including Leapfrog, IIFL, Accion, and Affirma Capital.
Shriram Transport Finance is the commercial vehicle-financing arm of Shriram Capital, the lending business of diversified financial services firm Shriram Group.
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