LAGreen Fund Supports Landmark Blue Bond Issuance in El Salvador
Article originally published on LAGreen's website on 29/01/2026. The European Union through LACIF contributes to the LAGreen Fund through financial instruments and technical assistance.
The LAGreen Fund (LAGreen) partnered with Bancoagrícola, El Salvador’s largest financial institution, to support the issuance of a USD 25 million senior Blue Bond in the local capital market. LAGreen invested USD 10 million alongside BID Invest and Norfund, which subscribed USD 10 million and USD 5 million respectively.
This transaction represents the first thematic bond for the bank and the first Blue Bonds issued in El Salvador, marking a significant milestone for the country’s thematic bond market and the broader development of sustainable finance in Central America.
The Blue Bond is part of Bancoagrícola’s broader Sustainable Bond Program of up to USD 200 million authorized by the Superintendency of the Financial System (SSF), reflecting coordinated work between the regulator, the El Salvador Stock Exchange, the issuer, and multilateral partners.
The issuance advances LAGreen’s mission to mobilize capital for sustainable resource management and climate resilience. Proceeds will finance blue-eligible projects focused on sustainable water and wastewater management, pollution prevention and control including solid waste management, and cleaner production, particularly in El Salvador’s marine-coastal regions. Funds will also support short-, medium-, and long-term credit operations aimed at strengthening sustainable economic development across the country.
The Blue Bond will be listed on the El Salvador Stock Exchange under its Green, Social and Sustainable Bond Guidelines, reinforcing the exchange’s commitment to responsible finance and to expanding investment alternatives for both local and international investors. This listing underscores the growing sophistication and transparency of El Salvador’s capital markets.
This transaction marks LAGreen’s first investment in El Salvador and its first partnership with Bancoagrícola, creating the foundation for a long-term strategic relationship.
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About LAGreen
LAGreen is the first green bond fund dedicated to Latin America. By investing in green bonds and supporting new issuers with technical assistance, LAGreen’s goal is to boost environmental and social benefits across the region and promote the transition to a green economy. In addition, the fund aims to promote high impact standards for green bonds, both in terms of the impact of supported projects, as well as green credentials, reporting, and impact assessment.
As an impact investment fund managed by Finance in Motion and Santander Asset Management, LAGreen was established as an initiative of Germany’s KfW Development Bank, with seed capital provided by the European Union (EU) and the German Federal Ministry for Economic Cooperation and Development (BMZ).
For more information visit https://lagreen.lu and follow us on LinkedIn.
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 and follow us on LinkedIn
About Bancoagrícola
With over 70 years of experience, Bancoagrícola®, part of Grupo Cibest, promotes sustainable development as a driver of collective well-being. Today, the bank 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 individuals and businesses to move forward, connect, and grow, anytime and anywhere.
Media contact LAGreen
Nusha Westhoff
Director Marketing & Communications
Phone: +49 69 271 035 742
Email: info@lagreen.lu
Media contact Bancoagrícola
Julio Días
Reputation and Communications Manager
Email: jufdiaz@bancoagrícola.com.sv
