Climate Finance
The Mekong Strategic Capital Climate Finance team is made up of leading private sector experts collaborating to catalyze and promote sustainable finance initiatives across Southeast Asia.
We are committed to sustainable and ethical investing and advisory to help promote the long-term success of our communities, the environment and our partners.
Our Climate Finance business takes a holistic approach to drive change at the local level, support sustainable companies’ investment readiness, and mobilize investment into green projects.
Finance Sector Development
OUR FOCUS: To strengthen banks green lending capabilities and Environmental & Social risk management capacity.
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We train banks on green lending opportunities and risk management processes.
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We foster E&S best practice in bank lending with training and tailored E&S tools and policies.
Sustainable Finance Initiative
MSC works with the local banking sector in the Mekong region to strengthen bank E&S risk management safeguards – the goal is to reduce E&S risks potentially created by private sector lending activities.
CAMBODIA
In 2016 Mekong Strategic Capital led the establishment of the Cambodian Sustainable Finance Initiative (CSFI) to develop and strengthen the local bank sector’s E&S risk management systems, standards, and safeguards.
Since then, we have:
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Led the creation of the Sustainable Finance Principles – 9 principles appropriate to Cambodia, launched by the Minister of Environment and the NBC Director General in 2019 and signed and adopted by 47 Cambodian banks.
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Built a comprehensive suite of E&S risk management policies, risk screening & categorization tools.
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Trained Cambodian banks 1-on-1, supporting implementation of the Principles through adoption of E&S risk management policies and tools in client onboarding and credit assessment processes.
VIETNAM
Mekong Strategic Capital is leading engagement with Vietnam’s banking sector to deliver E&S Risk Management Training and support the implementation of Vietnam’s environmental protection legislation.
We are leveraging our experience gained via the Cambodian Sustainable Finance Initiative, adapting the E&S tools and templates developed for Cambodian banks for use in the Vietnam context.
ENVIRONMENTAL & SOCIAL RISK MANAGEMENT SYSTEM
Sustainable Investment Advisory
OUR FOCUS: To arrange and mobilize climate finance into sustainable businesses across Southeast Asia.
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We de-risk investments and reduce transaction costs through technical assistance.
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We provide strategic advisory to support the development of scalable business strategies and financial models.
USAID Green Invest Asia
(2017 – 2023)
As the sole mandated finance and investment advisor, Mekong Strategic Capital successfully mobilized and arranged $446M of investment into sustainable landscape businesses across Southeast Asia, achieving 156M tons of greenhouse gas emissions reductions and converting 1.7M hectares to more sustainable land-use.
Read more about the success of the program.
ABOUT
USAID Green Invest Asia supported investors and financial institutions source pipeline in the land-use sector through evaluating climate investment opportunities and improving investees’ environmental risk management. Mekong Strategic Capital supported the screening and identification of profitable, scalable agriculture and forestry businesses in Southeast Asia which were raising capital and had sustainable, innovative commodity production.
WE SUPPORTED AGRICULTURE & FORESTRY BUSINESSES WITH:
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Capital raising for companies with sustainable, innovative commodity production
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Investment readiness through business advisory and financial modelling
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Investor matchmaking via MSC network of financial institutions and institutional investors.
WE SUPPORTED INVESTORS WITH:
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Screening of companies across sustainability criteria with scalable business models
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Due diligence support and client advisory (reducing transaction costs)
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Identification of co-investors, including commercial and blended finance
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De-risking investment by securing external and US Government partial credit guarantees.
TRANSACTION EXAMPLES
2019
Grandis Timber
Financial Advisory
FSC certified teak plantation in Cambodia with focus on ESG and reforestation
2022
Lionheart Farms
Financial Advisory
Coconut producer in the Philippines that is championing sustainable farming & reforestation
2022
Halcyon Agri
Financial Advisory
Sustainable-linked financing for improved traceability and climate outcomes
2021
Cassia
Financial AdvisoryAgribusiness in the Philippines that focuses on sustainable farmed crops such as cacao
2019
Lestari Capital
Technical Assistance
Technical assistance for feasibility studies for carbon projects
2020
IBIS Rice
Financial Advisory
Organic rice trader in Cambodia that protects wildlife, forests & supports farmers livelihoods
2021
H&M
Technical Advisory
Supply chain support for lower emissions
2022
Kennemer
Financial Advisory
Agribusiness in the Philippines that focuses on sustainable farmed crops such as cacao
2019
Royal Lestari Utama
Financial Advisory
Rubber business aiming to be the leader in sustainable natural rubber in Indonesia
2019
Agraus Resources
Technical Assistance
Technical assistance for nature-based solution projects
USAID Morodok Baitang
(2021 – 2026)
As the investment advisory implementing partner for USAID Morodok Baitang, MSC is responsible for identifying, developing, and mobilizing financing into sustainable businesses across Cambodia.
ABOUT
USAID Morodok Baitang aims to support strategic partnerships between rural communities, the private sector and development partners to grow revenue and employment opportunities in conservation-friendly, climate-smart and socially equitable enterprises across Cambodia.
MEKONG STRATEGIC CAPITAL SUPPORTS BUSINESSES & INVESTORS WITH:
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Identifying, developing and facilitating sustainable investment opportunities
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Developing a pipeline of investment-ready, commercially sustainable opportunities
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Business opportunity validation and business case articulation
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Investment facilitation and linkage to financing facilities (USAID, private sector and other)
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Targeted technical assistance for project developers, e.g., business advisory and financial modelling.
Green Investment Management
OUR FOCUS: To design and manage innovative investment strategies to catalyze green investments across Southeast Asia.
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We adopt transformative approaches to drive change and shift financing behaviors through appropriately structured financing and investment.
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We enable green investment across key economic sectors to protect and drive the roles that Mekong countries can play in global supply chains.
Cambodian Climate Financing Facility
Mekong Strategic Capital was the delivery partner for the Green Climate Fund and the Ministry of Environment’s initiative to launch a $100M Climate Financing Facility to support Cambodia’s sustainable development.
Mekong Strategic Capital has designed the Cambodian Climate Finance Facility (CCFF), a $100 million facility established within the Agricultural and Rural Development Bank (ARDB), which will support and enable Cambodia’s shift towards a greener economy and society, boosting its resilience to climate change.
The CCFF will offer primarily long-term debt financing to green projects in Cambodia, in addition to offering concessional funding to qualifying banks with E&S risk management practices in place to on-lend to green projects.
CCFF FUNDING STRUCTURE
CLIMATE CHANGE MITIGATION AND ADAPTATION SOLUTIONS TARGETED FOR FINANCING
Our Clients & Partners
