Shriram Transport Finance Company Ltd has raised Rs 350 crore ($48.3 million) in a debt funding deal structured and executed by non-bank lender Northern Arc Capital.
Northern Arc Capital, formerly known as IFMR Capital, also invested in the deal alongside capital market investors. 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 customized 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.
Shriram Transport Finance is the commercial vehicle-financing arm of Shriram Capital, the lending business of diversified financial services firm Shriram Group.