(Bloomberg) -- Northern Arc Investments, a private credit investment manager in India, is planning to launch a $100 million fund, seeking opportunities in green companies in the country. 

The Northern Arc Capital subsidiary began global roadshows to raise investor funds for what would be its first foreign currency private debt fund, said Ravi Vukkadala, the unit’s CEO. The fund will likely launch by December, he said in a recent interview.   

The initiative by Northern Arc Capital — one of the largest credit investors in the country and backed by LeapFrog Investments Ltd — reflects India’s growing appetite for green investments, mirroring global trends. The MSCI India ESG Leaders Index has risen 3.3% so far for the year, tracking positive returns in the broader equity market in the country. 

Northern Arc Investments’ foray into dollar-denominated funds is particularly aimed at attracting more foreign investors for domestic debt instruments. Rooftop solar solutions, electric cars and battery swapping are some of the sectors that will be the fund’s main investment targets, Vukkadala said.

“We will be investing in performing companies, which do business in green and sustainability space,” he said. 

The fund will operate from Gujarat International Finance Tec-City, a new economic zone in Ahmedabad designed to attract foreign capital and spur more trading of Indian assets. 

Northern Arc Investments manages 30.48 billion rupees ($366 million) worth of assets, according to its website. 

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