Proparco backs EVF with loan for climate finance and women entrepreneurs

Proparco backs EVF with loan for climate finance and women entrepreneurs

Proparco is providing a $20 million senior loan to EVF General Finance to support climate finance and access to finance for women entrepreneurs in Vietnam.

Photo: Proparco

According to an announcement on September 10, climate finance and women's access to finance are key priorities for Vietnam as it works towards more sustainable and inclusive growth. As the country targets carbon neutrality by 2050, climate finance is critical for renewable energy and other sustainable projects, while women-owned businesses – accounting for over 20 per cent of the business landscape – continue to face barriers to finance and growth.

EVF General Finance JSC has progressively strengthened its activities in both areas. Initially focused on financing the energy sector, particularly renewable energy, the institution has expanded its climate finance activities and strengthened its support for women-owned small and medium-sized enterprises (SMEs).

Building on an initial $10 million loan provided to EVF by Proparco in 2021 to support its climate finance activities, Proparco is renewing its support with a new $20 million senior loan. Under this new transaction, 50 per cent of Proparco’s loan will be dedicated to financing projects with climate co-benefits, while the remaining 50 per cent will finance women-led or women-owned SMEs. Through its commitment to women’s entrepreneurship, the project is eligible for the 2X Challenge, the international initiative aimed at advancing women’s economic empowerment.

The transaction also contributes to Team France’s commitment to Vietnam’s Just Energy Transition Partnership (JETP), signed in 2022 and aimed at mobilising $15.5 billion to support the country’s transition towards carbon neutrality by 2050.

Jean-Benoît du Chalard, Proparco’s regional director for North and Southeast Asia, said, “We are pleased to renew our support for EVF and, through this new transaction, to contribute to two key priorities for Vietnam: accelerating the financing of the climate transition and strengthening women entrepreneurs’ access to finance.”

Dinh Ngoc Bao, EVF’s head of International Markets Department and deputy head of Treasury Division, said, “This is an important milestone for EVF. We now hold a portfolio of over $280 million dedicated to green financing and more than $700 million in financing for women-led SMEs, reflecting our commitment to expanding responsible access to finance and supporting sustainable economic growth in Vietnam. We look forward to further developing innovative financing solutions that respond to the evolving needs of businesses and contribute to Vietnam’s long-term development.”

VIR