eco business Fund partners with Banco Agrícola to finance sustainable agriculture in El Salvador

The fund provided USD 18.7 million in funding, to be channeled by the bank to local companies in the areas of agriculture and agri-processing. 

Luxembourg / San Salvador, August 4, 2025 – The eco.business Fund announces a senior loan of USD 18.750.000 to Banco Agrícola, El Salvador’s largest bank, to support green and socially inclusive lending. The loan is part of a USD 150 million syndication with IDB Invest and other lenders. The loan marks eco.business’ second collaboration with Banco Agrícola, reinforcing a successful relationship and expanding the Fund’s reach in El Salvador.

This new financing will be used by Banco Agricola to invest in key sectors such as agriculture and forestry as well as increasing support for local small and medium-sized enterprises (SMEs) throughout the country. Specifically, the funds will be allocated to businesses already holding sustainability certifications (like Rainforest Alliance, or Fairtrade) and to companies making improvements in their production processes in order to get closer to obtaining one.  Funds are also expected to support small and medium-sized enterprises (SMEs) that are implementing sustainable practices in their production cycles, such as agroforestry measures and mechanical harvesters designed to protect biodiversity.

Banco Agrícola, a subsidiary of Grupo Bancolombia, serves more than 1.6 million customers across El Salvador and maintains a 24% market share in total assets. The bank is recognized for its leadership in agricultural financing, holding over 20% of the market share in the sector. It has demonstrated a strong commitment to supporting agribusinesses in optimizing production through sustainable technology and processes.

This transaction is expected to contribute to several Sustainable Development Goals (SDGs), including SDG 2 (Zero Hunger), SDG 6 (Clean Water and Sanitation), SDG 8 (Decent Work and Economic Growth), SDG 13 (Climate Action), SDG 15 (Life on Land) and SDG 17 (Partnerships for the Goals).
  
 

About Bancoagrícola

With over 70 years of experience, Bancoagrícola, part of Grupo Cibest, promotes sustainable development as a driver of collective well-being. It serves more than 1.6 million Salvadorans through a network of over 1,800 service points across the country—the largest and most modern in El Salvador.

Through innovation and proximity, it develops financial products and services that enable people and businesses to move forward, connect, and grow—anytime, anywhere.
 

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 in Latin America, the Caribbean, and sub-Saharan Africa. By providing financing for business practices that conserve nature and foster biodiversity, the fund seeks investments with both environmental and financial returns. The eco.business Fund provides financing through three avenues: local financial institutions that are committed to the fund’s mission and which have the capacity to reach its target group; directly to its target group (i.e. companies and producers); and in the case of sub-Saharan Africa, to real sector intermediaries. The fund supports sustainable operations in the sectors of agriculture, fishery (including aquaculture), forestry and tourism. Target beneficiaries are those that hold an eligible sustainability certification or those taking out a loan to make eligible sustainable investments in their operations.
Operating together with each of the two sub-funds, are two development facilities that provide high-impact technical assistance to investment partners and final borrowers.
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).

The sub-fund for sub-Saharan Africa was formally launched in 2020 with initial funding from BMZ.

The sub-fund for Latin America and the Caribbean has received funding from the European Commission as well as from numerous other prestigious development finance institutions and institutional investors.
For more information please visit www.ecobusiness.fund

About Finance in Motion  

Finance in Motion is a global impact asset manager focused exclusively on sustainable development in emerging markets and developing economies. The company structures, manages, and advises impact investment funds that bring together public and private investors to address climate change, strengthen biodiversity conservation, foster the sustainable use of natural resources, improve livelihoods, and promote economic opportunities.

For more information, please visit us at: www.finance-in-motion.com  
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