Navegar Fund III
Introduction
Swedfund has committed USD 15 million to Navegar Fund III, a private equity fund focusing on mid-sized companies in the Philippines.
The investment aims to help local businesses grow, strengthen their operations, and create more productive and better-quality jobs.
Read more in our press release: Swedfund invests in job creation and private sector growth in the Philippines
Facts
SDG in focus
No Poverty
End poverty in all its forms everywhere.
Decent Work and Economic Growth
Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all.
Reduced Inequalities
Reduce inequality within and among countries.
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 is expected to support growing businesses in the Philippines by increasing access to long-term capital. Through the fund’s investments, companies can expand their operations, create jobs and contribute to economic development.
Additionality
Swedfund’s investment helps increase the availability of growth capital for companies in a market where access to long-term financing can be limited.
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 Medium Risk (Fund-B), based on the fund’s strategy of investing in mid-sized companies, the environmental and social risks associated with the consumer and business services sectors, and contextual risks in the country.
ESG Mitigation Measures
Swedfund supports the fund in strengthening its business integrity practices and responsible investment processes.
Applicable IFC Performance Standards
IFC Performance Standards (PS) 1 – 2 are applicable.
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.
Other investments within
Financial Inclusion & MSME Financing