FTB Joined with ADB to Launch Revolving Fund to Expand the Green Financing and Emissions.

Phnom Penh, Cambodia (1 July 2026) — FTB is thrilled and immensely proud to join as a participating financial institution in the “Energy Efficiency Revolving Fund” (EERF) with funding support from the Asian Development Bank (ADB) and the Royal Government of Cambodia through SME Bank of Cambodia and the the Credit Guarantee Corporation of Cambodia (CGCC). . This landmark collaboration underscores FTB deep commitment to expanding green financing, while significantly mitigating risks and boosting robust confidence within the banking sector to drive a sustainable future.

“The Energy Efficiency Revolving Fund is an innovative mechanism that complements ongoing reforms supported by ADB to accelerate the clean energy transition and promote inclusive and sustainable finance” said ADB Country Director for Cambodia Ms. Yasmin Siddiqi. “By bringing together public and private stakeholders, this initiative is aimed at mobilizing greater private sector investment in energy efficiency, expand access to finance for businesses, and pave the way for a more competitive, low-carbon, and resilient economy.”

“FTB is pleased to be part of this important initiative to expand access to green financing for Cambodian enterprises,” said Mr. Dith Sochal, Chief Executive Officer of FTB. “By sharing risks and strengthening lender confidence, the EERF creates opportunities to scale up investment in energy efficiency, helping enterprises become more competitive and sustainable.”

The EERF is a financing mechanism established under Cambodia’s Energy Transition Sector Development Program, and was designed to unlock investments in energy-efficient technologies by local small and medium-sized enterprises (SMEs), which represent more than 90% of companies operating in the country. By providing access to finance at a more favorable conditions with a tailored product, the EERF will enable SMEs to invest in modern and energy-saving equipment and machineries, thereby improving their competitiveness through the reduction of energy costs and the reliance on imported fuels.

Despite its strong potential, energy efficiency investments in Cambodia have historically faced barriers, including limited access to finance, low awareness about the benefits of energy efficiency, and perceived risks by financial institutions. The EERF will address these constraints through concessional financing delivered via a revolving mechanism that can be reused over time. With an initial capitalization of $20 million—anchored by ADB support, which includes $12 million provided by the United Kingdom and $8 million by the Green Climate Fund through the ASEAN Catalytic Green Finance Facility—the EERF will support Cambodia meeting the National Energy Efficiency Policy target of reducing energy use by 19% compared to business-as-usual levels by 2030.

“Our targets on energy efficiency can only be achieved with substantial and sustained investment from the private sector, which account for the largest share of energy consumed in the country. Mobilizing private capital is therefore essential to scale up energy efficiency measures. In this context, the proposed mechanism serves as a critical complement to the Government’s broader policy and regulatory framework, which started in 2022 with the adoption of the National Energy Efficiency Policy”, said H.E. Dr. Ty Norin, Permanent Secretary of State, Ministry of Mines and Energy.

The fund will be implemented by the SME Bank of Cambodia, with the Credit Guarantee Corporation of Cambodia (CGCC) providing partial credit guarantees. The guarantee will be made available to participating financial institutions as an optional product and is aimed at reducing lending risks and incentivize non-collaterialized lending, which is still a major challenge in access to finance by most SMEs in Cambodia. The EERF will also specifically target women-owned and women-led enterprises, which often face greater barriers in borrowing from banks.

“This project builds on the success of the SME Co-Financing Scheme, launched by SME Bank in 2020 in response to the Covid-19 pandemic. The scheme played a critical role in enabling SMEs, both registered and unregistered, to access financing at favorable conditions and affordable terms. For the EERF, we look forward to working closely with participating financial institutions to ensure the swift deployment of funds, and thus accelerating the adoption of energy-efficient technologies among SMEs”, said H.E. Dr. Phan Phalla, Chairman of SME Bank of Cambodia. “We are proud to support investments that improve energy efficiency and drive long-term growth.”