Fusion Microfinance raises EUR 10 million from BANK IM BISTUM ESSEN
The German cooperative bank BANK IM BISTUM ESSEN (BIB) has concluded its first-ever debt financing in India, in the form of an ECB transaction, with Fusion Microfinance Private Limited, a significant NBFC MFI based in New Delhi. Fusion will employ BIB's EUR 10 million investment to provide systemic liquidity and microloans to low-income women borrowers, improving their access to credit and allowing them to grow their businesses.
Fusion Microfinance, a self-sustainable financial institution which leverages the distribution network to channel other products and services.
"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.” said Markus Christ, senior investment officer (Asia), BANK IM BISTUM ESSEN.
Fusion has 650 outlets in 300 underdeveloped areas in 18 states, giving it a pan-India footprint. As of December 31, 2020, it had an outstanding portfolio of INR 4,107 crore.
“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,” shared Devesh Sachdev, managing director, and chief executive officer, Fusion Microfinance.
The facility was syndicated and implemented by Northern Arc, and it is the latest in a series of deals in which the company has used its extensive network of worldwide DFIs to assist finance debt in its industries. Since the start of the pandemic, the company has raised finance for its own Balance Sheet and partners from US DFC, ADB, FMO, Calvert Impact Capital, Blue Orchard, and CDC.
“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,” added Bama Balakrishnan, chief operating officer, Northern Arc.
Northern Arc has provided over INR 95,000 crore in funding to its partner institutions through reputable domestic and international investors till March 31, 2021. As of March 31, 2021, Northern Arc's exposure was distributed throughout 570 districts in 35 Indian states and union territories.
Leapfrog, IIFL, Accion, Affirma Capital (formerly Standard Chartered Private Equity), Dvara Trust, Eight Roads, and Sumitumo Mitsui Banking Corporation are among the investors.
Fusion Microfinance, a self-sustainable financial institution which leverages the distribution network to channel other products and services.
"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.” said Markus Christ, senior investment officer (Asia), BANK IM BISTUM ESSEN.
Fusion has 650 outlets in 300 underdeveloped areas in 18 states, giving it a pan-India footprint. As of December 31, 2020, it had an outstanding portfolio of INR 4,107 crore.
“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,” shared Devesh Sachdev, managing director, and chief executive officer, Fusion Microfinance.
The facility was syndicated and implemented by Northern Arc, and it is the latest in a series of deals in which the company has used its extensive network of worldwide DFIs to assist finance debt in its industries. Since the start of the pandemic, the company has raised finance for its own Balance Sheet and partners from US DFC, ADB, FMO, Calvert Impact Capital, Blue Orchard, and CDC.
“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,” added Bama Balakrishnan, chief operating officer, Northern Arc.
Northern Arc has provided over INR 95,000 crore in funding to its partner institutions through reputable domestic and international investors till March 31, 2021. As of March 31, 2021, Northern Arc's exposure was distributed throughout 570 districts in 35 Indian states and union territories.
Leapfrog, IIFL, Accion, Affirma Capital (formerly Standard Chartered Private Equity), Dvara Trust, Eight Roads, and Sumitumo Mitsui Banking Corporation are among the investors.
