Sweden-based Swedfund is investing in Vietnamese EVF General Finance JSC (EVF) through a loan of up to $20 million.

Swedfund said in a statement on Friday that the loan will support access to capital for these companies, and parts of the proceeds are earmarked for climate action and women owned enterprises.

EVF is a financial services provider for micro-, small- and medium enterprises (MSMEs).

It is noted that Vietnam is one of Southeast Asia’s fastest growing economies, with rapidly increasing energy demand and greenhouse gas emissions.

However, 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.

“With this investment, we particularly aim to boost climate action and women’s participation in the economy. Of the loan, 40 percent will go to climate projects, like renewable energy and climate mitigation, and 30 percent will go to women owned enterprises,

“In this way we can both create decent jobs while contributing to a more sustainable and equal economy,” said Jane Niedra, Director of Financial Inclusion at Swedfund.

The loan was granted as part of a $40 million financing package arranged by OeEB and Swedfund.

Swedfund invests $15M in Excelsior Capital Vietnam Fund II to boost SME growth