Caja Cusco completed the first issuance of its subordinated sustainable bond in December 2025 - a USD 30 million-equivalent tranche in local currency under a programme of up to USD 50 million arranged by IFC. The bond was taken up by IFC and the LAGreen Fund, which invested the equivalent of USD 15 million. LAGreen, a Luxembourg-based fund established as an initiative of Germany's KfW Development Bank with seed capital from the European Union and Germany's BMZ, managed by Finance in Motion and Santander Asset Management, also provided technical assistance through its Advisory & Capacity Building Facility to help Caja Cusco develop the Sustainable Bond Framework underpinning the issuance.
The bond is the first subordinated sustainable bond issued by a Peruvian caja municipal (municipal savings and credit institution).
FRAMEWORK COVERS GREEN, SOCIAL AND AMAZONIA CATEGORIES
The Sustainable Bond Framework developed with LAGreen's technical assistance covers green, social and Amazonia categories. On the green side, the framework encompasses renewable energy, sustainable agriculture, and biodiversity projects. The social categories include affordable housing, gender-related lending, and financial inclusion activities. The framework also includes a distinct Amazonia-focused category.
The technical assistance provided to Caja Cusco covered the design of the framework, including the mapping of eligible activities to international standards and the establishment of governance and reporting processes.