eco business fund invests USD 20 million in Banco Industrial El Salvador to support sustainable agriculture eco business fund invests USD 20 million in Banco Industrial El Salvador to support sustainable agriculture

Article originally published on eco.business Fund's website on 22/10/2025. LACIF contributes to eco.business Fund through technical assistance and financial instruments.

The funds will be directed to local agri- businesses holding internationally recognized sustainability certifications or making individual improvements to improve their environmental footprint.

The eco.business fund has announced a USD 20 million investment in Banco Industrial El Salvador to promote sustainable agricultural practices across the country. 

This marks the fund’s seventh transaction in El Salvador since 2016, underscoring the country’s strategic importance in advancing the Fund’s impact mission through the agricultural sector.

Founded in 2011, the bank forms part of the regional BiCapital Group, with origins in Guatemala. This transaction marks the eco business fund’s first loan to the bank, building on its existing the group, which includes a prior investment in Banpaís Honduras.

The funds will be channeled by the bank to local businesses holding one of the international sustainability standards used by the fund, due to their high impact credentials, or implementing one of the individual measures agreed with the bank, which contribute to making such businesses more sustainable. Through this operation, eco business aims to enhance the capacity of the bank to direct financing to impactful activities, such as installing water-efficient irrigation systems for various crops, adopting dry-cleaning of sugarcane to also reduce water consumption or promoting shade-grown coffee to maintain soil quality.

In addition to the loan, the fund’s Advisory and Capacity Building arm plans to work closely with the bank to develop their climate change strategy, which includes a diagnostic assessment of the bank’s current practices in order to formulate a forward-looking action plan. Additionally, this assistance will incorporate climate risk analysis within the ESMS (Environmental and Social Management System) framework, as well as the corresponding sectoral guidelines.
 

About Banco Industrial El Salvador 

Banco Industrial El Salvador, S.A. is a Salvadoran company with entirely private capital, including Guatemalan investment participation. It began operations on July 13, 2011, according to the authorization from the Board of Directors of the Superintendencia del Sistema Financiero (Superintendency of the Financial System). Its mission is to be the bank with the most efficient service in El Salvador and continually promote civic values and our vision is to become our clients' first choice for their operations in the Northern Triangle.

Banco Industrial El Salvador is a subsidiary of Banco Industrial, S.A. (Guatemala), which is in turn a subsidiary of Bicapital Corporation, a company incorporated in the Republic of Panama. Founded in 2003, BI Corporation is one of the leading financial groups in Central America, with presence in Guatemala, El Salvador, Honduras, and Panama, whose assets exceed US$30 billion and more than 20,000 employees. Banco Industrial, S.A. (Guatemala) emerged within the Guatemalan Chamber of Industry in the late 1960s, seeking to support the country's industrial sector. It was founded with the support of hundreds of Guatemala's most important industrialists. Today, what began as a dream for several business owners in the Guatemalan industrial sector now boasts a network of more than 3,180 service points, has become the leading bank in the Guatemalan banking system, and currently holds a long-term international rating of BB with a stable outlook from the Fitch Ratings agency.

In El Salvador, Banco Industrial was founded with the goal of supporting the country's productive sector and the vision of becoming the first choice for businesses and individuals developing their operations in the Northern Triangle, through agile and innovative services. The bank offers the Salvadoran market a broad portfolio of savings and investment financial products, including demand deposit accounts, savings accounts, scheduled savings accounts, and term deposits. The bank also offers credit financing alternatives through working capital lines of credit, mortgage loans, consumer loans, and vehicle acquisitions. It also offers services such as issuing letters of credit, surety bonds, international transfers, collection services, and foreign currency transactions.

As of June 30, 2025, Banco Industrial has experienced exceptional growth with over $918.9 million in assets (+19% YTD), $670.3 million in net assets (+13% YTD), $645.3 million in deposits (+26% YTD), and $4.0 million in earnings (+13% YoY). Over its more than 14 years of operation, Banco Industrial El Salvador, S.A. has supported thousands of Salvadorans in achieving multiple projects and dreams, positively impacting the economy, and providing service characterized by its human, agile, and practical approach.
For more information, please visit: https://www.corporacionbi.com/sv/bancoindustrialsv/
 

About the eco business fund

The eco business fund promotes 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. Operating together with each of the two sub-funds, are two development facilities that provide high-impact Advisory and Capacity Building support to investees 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 first loss capital from the German Federal Ministry for Economic Cooperation and Development (BMZ), the European Union, and the UK Department for Environment, Food and Rural Affairs (DEFRA).

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 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.

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