NBFC Northern Arc secures $65-M in debt for first climate fund from DFC, OeEB

Chennai-based non-banking financial company (NBFC) Northern Arc has secured debt funding of USD 65 million for its first climate fund.The firm has received debt commitments of USD 50 million from the United States International Development Finance Corporation (DFC) and USD 15 million from OeEB, the Development Bank of Austria. The climate fund will focus on providing debt financing to growth-stage companies operating in sectors such as commercial, industrial, and residential solar energy, energy efficiency, green buildings and sustainable agriculture.The climate fund marks Northern Arc’s entry into dedicated climate financing. The fund will also focus on businesses innovating in the circular economy, water segment and adaptation technologies.