Digital debt platform Northern Arc Capital has syndicated an ECB transaction worth 10 million euros or about Rs 88 crore for Fusion Microfinance from the German cooperative bank Bank Im Bistum Essen (BIB), making it the maiden debt funding in the country for the German lender.
The funding will help the Delhi-based Fusion Microfinance in furthering financial inclusion and help alleviate the economic impact of the pandemic, Northern Arc said in a statement on Monday.
"With this funding, we look forward to helping rural women with economic opportunities and transform the quality of their lives," Markus Christ of BIB said, adding that it took more than a year for them to conclude the transaction due to the pandemic.
Devesh Sachdev of Fusion Microfinance said this funding is the first ECB transaction and it opens a new channel of funding for us in the midst of a challenging environment. This money will enable them to extend further support to our women clients who are facing extremely difficult challenges due to the ongoing pandemic.
Since the onset of the pandemic last March, Northern Arc has raised debt for its own balance sheet or its partners from the US, the DFC, ADB, FMO, Calvert Impact Capital, Blue Orchard and the CDC.
BIB is one of the largest cooperative banks in Germany with over 50 years of experience and is specialized on church institutions, healthcare sector and their collaborators in Germany. Its total assets of USD6.4 billion and about 150 employees.