Representatives of EVN Finance and FMO at GEFE 2024. Photo: GEFE 2024's Organising Board

The signing ceremony was held within the framework of the Green Economy Forum and Exhibition 2024 (GEFE 2024) taking place in Ho Chi Minh City from October 21 to 23 with the participation of embassies, businesses, and financial institutions from Europe and Vietnam.

FMO will provide a $30 million loan with a long 5-year tenor. The loan from FMO will be wholly used to finance green projects, micro-, small, and medium-sized enterprises, and women-owned small- and medium-sized enterprises. This is in line with the direction and business plan of EVN Finance in 2024 and beyond.

As of September 2024, EVN Finance, a non-bank financial institution established by state utility Vietnam Electricity, has mobilised VND6.5 trillion ($255.8 million) in foreign borrowing and green bond issuance. Among them, more than 70 per cent has been used to finance green and inclusive projects in line with the company’s sustainable development goals.

One of the key funding sources for EVN Finance comes from European Development Finance Institutions (EDFI). Besides funding, the company also receives technical assistance to adjust and complete its environmental and social risk management system to meet International Finance Corporation and EDFI standards.

The loan with FMO marks a turning point for EVN Finance in improving operational efficiency, assessing environmental and social risks, and enhancing corporate governance, thereby pursuing its sustainable development goals.