EVF General Finance JSC (EVF)
Introduction
Swedfund invests in Vietnamese EVF General Finance JSC (EVF) through a loan of up to USD 20 million. EVF is a financial services provider for Micro-, Small- and Medium Enterprises (MSMEs). The loan will support access to capital for these companies, and parts of the proceeds are earmarked for climate action and women owned enterprises.
Vietnam is one of Southeast Asia’s fastest growing economies, with rapidly increasing energy demand and greenhouse gas emissions. Access to long term finance remains limited, particularly for MSMEs. Through the loan, Swedfund provides additional long-term financing that enables EVF to expand lending to underfinanced MSMEs while supporting climate related investments.
Read more in our press release: Swedfund invests in MSME growth and climate action in Vietnam
Facts
SDG in focus
No Poverty
End poverty in all its forms everywhere.
Reduced Inequalities
Reduce inequality within and among countries.
Climate Action
Take urgent action to combat climate change and its impacts.
Sector
Financial inclusion & MSME financing
Swedfund’s investments in Financial Inclusion are made in regulated banks and microfinance institutions in order to increase access to debt capital for entrepreneurs, MSMEs and low-in come earners, or in local investment platforms, local companies or through so-called private equity funds to increase access to equity capital for MSMEs.
Value creation
Impact
The investment contributes to financial inclusion, local economic growth, and job creation via increased access to credit for MSMEs. Through dedicated use of proceeds, EVF further supports climate action, also exclusively through MSMEs. In turn, the investment will contribute to reducing inequalities in Vietnam, as well as enhance local livelihoods.
Additionality
Swedfund’s investment is financially additional as it targets underserved geographics and sectors. Further, active value creation opportunities exist within gender equality and women’s economic empowerment, as well as within formalization of E&S and Impact processes.
ESG
Requirements
In line with Swedfund’s Policy for Sustainable Development, the portfolio company is required to materially comply with, inter alia: (i) all internationally recognised human rights (ii) the EDFI harmonized exclusion list and EDFI Fossil Fuel Exclusion List, (iii) local environmental, health & safety and labour laws and regulations, (iv) applicable IFC Performance Standards, (v) the ILO’s Declaration on Fundamental Principles and Rights at Work and the ILO’s Basic Terms and Conditions of Employment.
ESG Risk
E&S risk categorisation is High Risk (FI-A) based on potential E&S risks and impacts inherent to the high-risk sectors and contextual risks in the country.
ESG Mitigation Measures
Swedfund is supporting the company to further develop its environmental and social management systems (ESMS), and to address issues related to sustainability processes. Swedfund is also supporting the company to further strengthen its business integrity management system.
Applicable IFC Performance Standards
IFC Performance Standards (PS) 1-8 are applicable to EVF’s portfolio, although only IFC PS 1-4 are applicable for the activities funded by our investment.
Whistleblowing channels and Grievance Mechanism
Swedfund’s whistleblowing services can be used by employees, contractors and others at Swedfund, and by the companies and funds in which Swedfund invests. The complaints mechanism can be used for all types of complaints concerning Swedfund and Swedfund’s portfolio companies, but not for complaints concerning individuals as a result of restrictions arising from data protection legislation. 🔹 Link in website footer.