Overview
The Foreign Trade Bank of Cambodia (FTB) Green Credit Facility is a USD 160 million blended finance vehicle designed to scale green lending in Cambodia across renewable energy, energy efficiency, clean transportation, green buildings, and sustainable agriculture. The Facility aims to combine concessional and commercial tranches with innovative Green Deposit products mobilized from the domestic market. The facility would be further complemented by a Technical Assistance Facility to support ESG capacity building and project preparation. The FTB Green Credit Facility will offer long-tenor green loans at affordable rates, on-lending to local financial institutions, and credit guarantees to expand green lending in targeted sectors across Cambodia.
Problem
As of 2025, Cambodia faces a climate finance gap of over USD 22 billion; however, green lending remains underdeveloped, accounting for less than 1% of major banks’ portfolios as of 2024. Domestic financial institutions view renewable energy, energy efficiency, and other climate-related projects as high-risk and complex due to their long payback periods, significant upfront costs, uncertain collateral values, and limited in-house expertise to assess them. With the early stages of finalizing the national green taxonomy and a few proven case studies, investor confidence remains low, as most green projects in Cambodia continue to rely on donor or public funding. These structural barriers constrain the flow of private capital into sectors critical for Cambodia’s low-carbon transition.
Solution
The FTB Green Credit Facility aims to transform the financial sector’s approach to climate finance in Cambodia by offering concessional, long-term loans and embedding risk-sharing and credit enhancement mechanisms to lower collateral requirements and unlock lending to green sectors that are typically excluded. Its Technical Assistance program will strengthen ESG systems, build staff capacity, support borrowers in refining proposals and business plans, and provide independent monitoring and verification to ensure the credibility of Green Deposits and project impacts.
Furthermore, the Facility will expand adaptation solutions in agriculture and rural infrastructure to safeguard livelihoods and public health with better access to safe and affordable water. By demonstrating proof-of-concept for commercially viable models, such as solar farms, EV fleets, green-certified buildings, and biomass-based fertilizer production, it will catalyze greater domestic private capital flows into Cambodia’s green economy.
CC Facility Support
The CC Facility support will strengthen FTB’s approach to product structuring, market launch, and phasing the rollout of financial products, in addition to providing specific advisory services on launching and marketing the green deposit product. It will also support FTB in integrating refined climate criteria for investment processes, accelerate the development of a comprehensive IMM framework, and enable the appropriate integration of gender assessments and action plans. Additionally, the CC Facility will also support FTB in refining the design of its TA facility.
Website
https://ftb.com.kh/en/