NARC

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The proposed project entails (i) an equity investment of up to US$40 million and (ii) a senior debt investment of US$40 million in Northern Arc Capital Limited (“Northern Arc” or “NACL” or “the Company”). Northern Arc is non-banking financial company (NBFC) which serves the micro, small and medium enterprise (MSME), affordable housing finance and agricultural finance segments, directly (through partnerships and co-lending) and through its institutional partners (primarily financial institutions). In addition, NACL has a fund management business (through its wholly owned subsidiary) and a placements business through its technology platform that provides a variety of services and products to participants involved with the Indian debt market. As of March 2023, Northern Arc had assets under management* of US$1.1 billion# and a domestic credit rating of AA- (Stable) by ICRA and India Ratings. IFC’s investment support will strengthen the Company’s capital and accelerate its lending to the MSME segment (the “Project”).