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Northern Arc Capital Syndicates €10 Million Debt Facility From BANK IM BISTUM ESSEN Eg (BIB) To Fusion Microfinance

The transaction facilitated by Northern Arc Capital, a leading digital debt platform that addresses the credit requirements of the underbanked in India, took over a year to culminate with the global health crisis throwing up multiple challenges.” added Markus

Northern Arc Capital Syndicates €10 Million Debt Facility From BANK IM BISTUM ESSEN Eg (BIB) To Fusion Microfinance
Northern Arc Capital Syndicates €10 Million Debt Facility From BANK IM BISTUM ESSEN Eg (BIB) To Fusion Microfinance

Bank IM Bistum Essen, a Germany-based cooperative bank has concluded their first-ever debt funding in India in the form of an ECB transaction to Fusion Microfinance Private Limited, a leading NBFC MFI headquartered in New Delhi. BIB’s EUR 10 million (c. INR 88 crore) funding to Fusion will provide systemic liquidity to Fusion and will be utilized to provide microloans to women borrowers from low-income households, increasing their access to finance and for the growth of their businesses. 

Markus Christ, Senior Investment Officer (Asia) at BANK IM BISTUM ESSEN, said: "We are extremely delighted to have partnered in our first transaction in India with FUSION Microfinance with the support of Northern Arc Capital. We believe that especially in these turbulent times it is more important than ever to show a strong commitment and support to the underprivileged women entrepreneurs active in the rural areas of the country. With these funds provided we look forward to contributing to women with economic opportunities to transform the quality of their lives.”

The transaction facilitated by Northern Arc Capital, a leading digital debt platform that addresses the credit requirements of the underbanked in India, took over a year to culminate with the global health crisis throwing up multiple challenges.” added Markus

Devesh Sachdev, MD & CEO of Fusion Microfinance: “This is a very happy moment for us on two counts - it’s the beginning of our relationship with a very esteemed organisation like BIB and this being our very first ECB transaction. It opens a new channel of funding for us in the midst of a challenging environment. This will enable us to extend further support to our women clients who are facing extremely difficult challenges due to the ongoing pandemic.”

The facility, syndicated and executed by Northern Arc, is the latest in a series of transactions where the company has used its extensive relationships with global DFIs to facilitate debt funding in its sectors. Since the onset of the pandemic, the company had raised debt for its own Balance Sheet or its partners from US DFC, ADB, FMO, Calvert Impact Capital, Blue Orchard and CDC.

Commenting on the transaction, Bama Balakrishnan, Chief Operating Officer, Northern Arc said:  “Northern Arc is excited to have played an important role in this landmark transaction. This was the first ECB borrowing for Fusion and the first debt transaction for BIB in India. It is a typical example of our work, showcasing our capabilities of introducing new investors to our sectors and enabling funding for our partners through new products.”



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