Supporting sustainable agribusinesses in Costa Rica – eco.business Fund provides USD 10 million loan to Banco Promerica
The eco.business Fund has disbursed USD 10 million to Banco Promerica, increasing access to finance for sustainable agricultural producers in Costa Rica. This new partnership aims to support sustainability-certified companies as well as small and medium-sized farmers implementing sustainable practices, ensuring the long-term competitiveness of the agribusiness sector.
Costa Rica is committed to becoming the first carbon-neutral country in Latin America by 2050. Partnering with Banco Promerica, one of the most advanced financial institutions in the region with regards to sustainability, will mobilize capital towards environmentally and socially responsible projects in agriculture and the agricultural value chain. Banco Promerica has developed a robust framework to comply with high environmental and social standards which includes a catalogue of green products to conduct impact-orientated investments, implementing the Sustainable Development Goals (SDGs) operationally, and measuring the impact of its loan portfolio.
Dr. Jens Mackensen, Chairperson of the Board of Directors of the eco.business Fund, stated: “This investment will be the fourth the eco.business Fund has made in the country, and we are proud to be partnering with a well-recognized institution like Banco Promerica. Their commitment to sustainable banking, as evidenced by an advanced green strategy, is the type of partnership that will support sustainable companies in the agricultural sector in Costa Rica.”
"We are proud to receive our first funding from eco.business Fund that we hope will be the first transaction of many more in the future. With these investments we aim to expand our agribusiness portfolio and incentivize our clients towards more sustainable practices. Eco.business Fund is a very valuable partner for us, for its experience in the sector and for the technical assistance that will provide us to develop capabilities within our team," said Mr. Federico Chavarría, Deputy Business Manager at Banco Promerica.
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.
An impact investment fund advised by Finance in Motion, 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 IDB Invest, a member of the Inter-American Development Bank (IDB) Group, 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.
Banco Promerica Costa Rica is the eight largest bank operating in Costa Rica with a market share of 3.3% and belongs to Promerica Financial Corporation, one of the largest regional financial groups in Central America with consolidated assets of over USD 14 billion. The Group consists of nine banks (located across Nicaragua, Costa Rica, El Salvador, Dominican Republic, Ecuador, Honduras, Panama, Guatemala and Cayman Islands) that were gradually acquired over the past 30 years. Founded in 1992, Banco Promerica Costa Rica is the second oldest and the third largest operation within the Group and is considered a cornerstone and a strategic subsidiary to enhance the Group’s regional visibility, consolidate client loyalty and strengthen its competitive position vis-à-vis other financial conglomerates in the region.
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