Swedfund, Sweden’s development finance institution, has invested up to $20 million in Vietnam’s EVF General Finance JSC (EVF), a financial services provider for micro, small, and medium-sized enterprises (MSMEs).
The investment, in the form of a loan, will support access to capital for MSMEs, with a portion of the proceeds earmarked for climate action and women-owned enterprises.
Through the loan, Swedfund will provide additional long-term financing to help EVF expand lending to underfinanced MSMEs while supporting climate-related investments.
The loan was granted as part of a $40 million financing package arranged by the Development Bank of Austria (OeEB) and Swedfund.
“With this investment, we aim to boost climate action and women’s participation in the economy. Of the loan, 40% will go to climate projects, like renewable energy and climate mitigation, and 30% will go to women-owned enterprises. In this way, we can both create decent jobs while contributing to a more sustainable and equal economy,” says Jane Niedra, Director of Financial Inclusion at Swedfund.
Founded in 2008, EVF General Finance Joint Stock Company is a Vietnamese non-banking financial institution offering a range of financial services, including granting credit lines to MSMEs.
Swedfund has a stated mission to reduce poverty through sustainable investments in developing countries. It plays an important role in the implementation of the 2030 Agenda and the Paris Agreement on climate.
In October, Swedfund invested $15 million in Excelsior Capital Vietnam Fund II to boost private sector development and growth in the Southeast Asian country.
This came shortly after the Swiss Investment Fund for Emerging Markets (SIFEM) committed $20 million to Excelsior Capital Vietnam Partners’ (ECVP) $200-million second fund in August this year.
