Vietnam is one of SIFEM’s priority countries. Small and medium enterprises (SMEs) in Vietnam are one of the main drivers for poverty alleviation, particularly in rural areas. However, their contribution to Vietnam’s economy has been historically limited due to the dominance of large state-owned enterprises. SME development faces a substantial financing gap. The loan to EVN Finance is an opportunity for SIFEM to support access to credit for SMEs and to the post-Covid-recovery of the economy overall. With 50% of SIFEM’s loan earmarked for SME lending, it will support the growth of EVN Finance’s SME portfolio. The other 50% of the loan will be ringfenced to climate mitigation projects, mainly the financing of small-scale solar photovoltaic projects and C&I projects for which EVN Finance has created dedicated products. This transaction is SIFEM’s first green loan. Through its contribution to the development of the renewable energy sector in Vietnam, it responds directly to the strategic objective of fighting climate change.