eco.business Fund provides USD 5 million loan to Banco Cuscatlán to support sustainable business practices in El Salvador
New partnership to extend financing to companies in the agribusinesses and forestry value chain
Luxembourg and San Salvador, June 14, 2019 – The eco.business Fund has disbursed a USD 5 million senior loan to Banco Cuscatlán in El Salvador to extend financing to companies in the agribusiness and forestry value chains that prioritize sustainability and demonstrate environmental commitment. The new partnership aims to promote sustainability-certified companies that contribute to biodiversity conservation, responsible use of natural resources, and mitigation and adaptation to climate change.
The proposed investment would be the fund’s fourth in El Salvador, supporting Banco Cuscatlán in its expansion and diversification strategy. The partnership will also allow the eco.business Fund to support the development of its agribusiness operations during the transformation process.
Dr. Jens Mackensen, Chairperson of the Board of Directors of the eco.business Fund, stated: “This investment is not only the start of a promising relationship between both institutions, it also forms part of the fund’s programmatic approach to establish sustainability concepts as a core business principle for financial institutions in the region. This will increase the eco.business Fund’s impact in El Salvador, and contribute positively to our region-wide development mission.”
The eco.business Fund also aims to help Banco Cuscatlán raise internal awareness and stimulate organizational knowledge on environmental sustainability. Banco Cuscatlán wishes to leverage on the cooperation with the Fund through technical assistance provided by the eco.business Development Facility to work towards an environmental and social risk management culture.
Executive Director of Banco Cuscatlán, José Eduardo Luna said: “At Banco Cuscatlán we are committed to the development of El Salvador and believe that promoting credit lines oriented towards guaranteeing this development in a sustainable way is vital for our economy, as well as to ensure the future of new generations.”
About the eco.business Fund
The eco.business Fund aims to promote business and consumption practices that contribute to biodiversity conservation, to the sustainable use of natural resources, and to mitigate climate change and adapt to its impacts. By providing financing for business practices that conserve nature and foster biodiversity, the fund seeks investments with both environmental and financial returns. The fund mainly provides loans to qualified financial institutions that on-lend the money to eligible borrowers, which include holders of recognized certifications or those making improvements in line with conservation and biodiversity goals. The fund supports sustainable operations in the sectors of agriculture, fishery (including aquaculture), forestry and tourism.
The eco.business Fund was initiated by Germany’s KfW Development Bank and Conservation International with financial support from the German Federal Ministry for Economic Cooperation and Development (BMZ). It has received further donor support from the European Commission. The fund’s additional investor base comprises the U.K. government’s Department for Environment, Food and Rural Affairs, Dutch development bank FMO, Austrian development bank OeEB, and institutional investors such as sustainable banking institution ASN Bank, German ethical bank GLS Bank, Calvert Impact Capital, and Raiffeisen Bank International. Finance in Motion, a leading impact investing company, is also an investor.
Operating hand-in-hand with the eco.business Fund, the eco.business Development Facility provides high-impact technical assistance to financial institutions and final borrowers.
For more information please visit www.ecobusiness.fund and follow us on Twitter @ecobusinessfund.
About Banco Cuscatlán
Banco Cuscatlán is one of the principal Banks in El Salvador. It counts with 54 points of attention and with 1700 employees throughout El Salvador. Under its new digital strategy it has in progress an investment of $25 million dollars to position itself as digital leader in the Salvadorian banks. Recently it was recognized by Global Finance as first place at the 18th annual award of the world currency exchange providers.
For more information please visit www.bancocuscatlan.com or on Facebook Banco CUSCATLAN
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Tel: +503 2202-3132 / +503 7946-6337