Northern Arc debt products

  • Term loans and working capital loans

    We offer term loans and working capital loans to clients from all three segments, through our own balance sheet and through our Investor Partners. The ticket sizes of our loans to financial institutions vary significantly based on their size and credit assessment.

    We also offer structured credit lines to meet the working capital needs of mid-market companies. Within the overall tenor, the Borrower has the flexibility to use the limit on a need basis and pay interest only for the period of utilization with full repayment at maturity. The product gives flexibility to clients to effectively manage cash flows and the finance cost. Structured credit lines can further be customized based on a client’s requirements such as purchase order financing (pre-shipment finance) and financing for entire cash conversion cycle of our borrowers.

  • Non-Convertible Debentures (NCDs)

    NCDs are an important source of funding for our Originator Partners and mid-market companies since they help tap into funding from diverse groups of investors such as foreign portfolio investors, mutual funds, large NBFCs, private wealth investors, etc. We assist our clients in the issuance of secured and unsecured NCDs of differing sizes, tenors and credit ratings to us and Investor Partners.

  • Principal Protected Market-Linked Debentures (“PP-MLD”)

    We have structured, arranged, and invested in the issuance of Principal Protected Market Linked Debentures (PP-MLDs) by our clients. Under these instruments, the yield to Investor Partners is dependent on the performance of a reference index and is ascertained towards the maturity of the debentures. Issuers of listed PP-MLDs benefit from the longer average maturity due to the generally bullet repayment structure (principal and interest) of the instrument.   

  • Commercial paper

    We have enabled our Originator Partners to raise debt through commercial paper issuance. The tenor for such paper is up to a year. Investor Partners in this product have included AIFs, NBFCs and mutual funds. 

  • External commercial borrowings (“ECBs”)

    This product has allowed our clients to tap into offshore Investor Partners. We have offered both rupee-denominated and foreign currency-denominated ECBs and have concluded ECB transactions for multiple Originator Partners.

  • Sub-debt products

    We offer these products to Originator Partners in the form of subordinated term loans, long-term unsecured subordinated NCDs and redeemable preference shares. These products allow our Originator Partners to strengthen their capital base.