• IDB Invest announces a loan of up to US$150 million to Bancoagrícola to strengthen its SME and sustainable portfolios.
• The project includes blended financing from the Canadian Climate Fund, with incentives for meeting sustainability goals.

WASHINGTON — IDB Invest announced a financing operation of up to US$150 million for Banco Agrícola, S.A., with the aim of expanding its capacity to grant loans to small and medium-sized enterprises (SMEs), particularly for sustainable projects, thereby supporting economic growth and resilience in El Salvador.

The operation consists of a loan of up to US$40 million from IDB Invest, another loan of up to US$10 million provided by the Canadian Accelerator Fund for Net Zero Emissions and Climate Resilience, and additional financing of US$100 million that will come from funds contributed by private sector investors.

The Canadian Accelerator funds will act as incentives to strengthen the bank's commitment to financing its green portfolio and improving its resilience. At the same time, international standards such as those of the International Sustainability Standards Board (ISSB) S1 and S2 are being promoted.

In El Salvador, SMEs represent more than 90% of businesses and employ 31% of the population, but they face significant barriers to accessing finance. In addition, the country is critically exposed to natural disasters and urgently needs to invest in resilience. This context underscores the importance of expanding access to productive credit, an area where the financial sector has a transformative role.

In addition to financing, the project includes technical assistance to support Banco Agrícola in preparing a future thematic issuance, strengthening its sustainable finance strategy, and aligning its risk management practices with ISSB S1 and S2 international standards. An Environmental and Social Action Plan (ESAP) will also be implemented to strengthen its Environmental and Social Management System (ESMS), ensuring long-term sustainable growth.

This new financing is in addition to an operation carried out in July 2022, when IDB Invest granted a US$70 million loan to Bancoagrícola.

About IDB Invest

IDB Invest is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize economic, social, and environmental development in the region. With a portfolio of US$22 billion in assets under management and more than 440 clients in 25 countries, IDB Invest provides innovative financial solutions and advisory services that meet its clients' needs across various sectors. Visit our website: idbinvest.org/es

About Bancoagrícola®

With more than 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 more than 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 Canadian Climate Fund

Managed by the Inter-American Development Bank, the Canadian Climate Fund for the Private Sector in the Americas promotes climate resilience and reduction of greenhouse gas emissions in Latin America and the Caribbean through new technologies, innovative business models, and nature-based solutions while promoting gender equality, diversity, and inclusion.