Proparco Provides $20M Loan to EVF for Women-Led SMEs

Climate finance and women’s access to finance are emerging as key priorities for Vietnam as the country works towards sustainable and inclusive economic growth. With a target of achieving carbon neutrality by 2050, Vietnam is focusing on financing renewable energy and other sustainable development projects.

At the same time, women-owned businesses, which account for more than 20 per cent of the country’s business landscape, continue to face challenges in accessing finance and expanding their operations. Improving financial access for these businesses remains important for promoting broader economic participation.

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

Key Highlights:

• Proparco provides EVF with a $20 million loan for climate finance and women-led SMEs
• 50 per cent of the loan will fund climate projects, while 50 per cent will support women-owned SMEs
• The deal supports Vietnam’s goal of carbon neutrality by 2050 through its JETP initiative

Proparco is extending its support to EVF with a new $20 million senior loan to continue its climate finance activities, on the back of an initial $10 million loan granted to EVF in 2021. The new transaction will allocate 50% of the amount of Proparco's loan to climate co-benefits, and 50% will be granted to women led or owned SMEs. As a program that supports women entrepreneurs, it is a candidate for the 2X Challenge, an international program dedicated to furthering women's economic empowerment.

The deal also helps to deliver on Team France's Vietnam's Just Energy Transition Partnership (JETP) targeted to unlock $15.5 billion to support Vietnam's 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.”