Financial hub for renewable energy
EVNFinance is a financial non-banking institution that has increased its focus on providing loan products to support the development of rooftop solar products across the rapidly developing country over the last several years. The institution offers loan facilities to small and medium-sized project developers for the installation of solar rooftops. Many of these local developers can only reach out to regional commercial banks, the vast majority of which do not see this market segment as a priority. EVNFinance fills this financing gap.
EVNFinance currently finances over 110 rooftop solar projects, with a 134 MWp capacity.
Senior Investment Managers Altynai Valikhanova and Constant Tilman: ”Our investment supports the growth of EVNFinance’s rooftop solar portfolio and strengthens its ambition to become the financial hub for renewable energy in Vietnam. The development of this industry is essential to the country’s ambition to move away from a coal-based economy towards one based on renewable energy.”
For the coming years, EVNFinance is looking to further capitalise on its competitive edge. It has also set the ambition to become the main financial institution to support the country’s energy transition by providing both loans and non-financial support to players in the renewable energy sector. Furthermore, EVNFinance will focus on becoming a ‘green’ financial institution by implementing an Environmental and Social Management System.
Collaboration among funds
This investment is a collaboration among four funds within Triodos IM’s Impact Private Debt and Equity division:
- Triodos Groenfonds
- Triodos Renewable Energy Emerging Markets Fund
- Triodos Microfinance Fund
- Triodos Fair Share Fund
For Triodos Groenfonds and Triodos Renewable Energy Emerging Markets Fund this is an opportunity to increase exposure to a rapidly developing country and follow-up on the recent investment in the largest wind power project in Vietnam. Fund Manager Greig Blackie: “This investment also supports the strategy of both funds to offer loans earmarked for renewables and energy efficiency to financial institutions in emerging economies. These investments are complementary and a well-balanced diversifier to the senior loans provided to utility scale renewable energy projects.”
For the Financial Inclusion funds (Triodos Microfinance Fund and Triodos Fair Share Fund) this is an opportunity to re-enter the Vietnamese market. Fund Manager Tim Crijns: “This investment strongly aligns with the strategy of our Financial Inclusion funds to further diversity towards sector-focused financial institutions, such as clean energy.”