IFC Backs Peru’s First Microfinance Sustainable Bond to Unlock MSME Growth

Caja Cusco—one of Peru’s leading municipal savings and credit institutions—plays a pivotal role in narrowing that gap.

The International Finance Corporation (IFC) has announced its participation in the first sustainable bond issued by Caja Cusco, marking a major milestone for Peru’s microfinance sector and signaling a new push to combine financial inclusion, climate-smart lending, and Amazon sustainability.

The bond targets one of Peru’s most persistent challenges: access to finance for micro, small, and medium enterprises (MSMEs). Although MSMEs account for 99 percent of private enterprises, 42 percent of GDP, and 89 percent of private-sector jobs, they face a financing gap estimated at US$8.1 billion.

Caja Cusco—one of Peru’s leading municipal savings and credit institutions—plays a pivotal role in narrowing that gap. With operations across all 25 regions and a strong presence in rural and low-income communities, the institution is uniquely positioned to channel capital where traditional banking rarely reaches.

Capital With a Sustainability Mandate

Under the new issuance, at least 60 percent of bond proceeds will be directed toward efficient agriculture technologies, water-saving solutions, and sustainable production systems. Another 30 percent will support women-led MSMEs, addressing persistent gender gaps in access to credit, while 10 percent will be dedicated to MSMEs operating in the Peruvian Amazon, one of the country’s least financially included regions.

“This subordinated sustainable bond marks a milestone for Caja Cusco,” said Yovana Enríquez Tisoc, Chief Financial Officer of Caja Cusco. “From the Andes and the heart of the ancient Tahuantinsuyo, our mission has always been to drive the development of our communities with dignity and purpose. This step reaffirms our commitment to uniting financial inclusion, sustainability, and regional development.”

Setting a Benchmark for Peru’s Microfinance Sector

For IFC, the transaction reflects a broader strategy of blending financial innovation with climate and social impact. Beyond capital, IFC is providing local-currency financing on attractive terms, helping Caja Cusco reduce exposure to foreign exchange risk. The partnership also includes advisory support to strengthen environmental, social, and governance (ESG) systems, ensuring that sustainability goals are embedded into lending operations.

“This pioneering operation reaffirms IFC’s commitment to financial innovation and sustainable development in Peru,” said Elizabeth Martínez de Marcano, IFC Regional Director for Latin America and the Caribbean. “Caja Cusco is expanding access to finance for MSMEs, driving job creation, and setting a benchmark for the country’s microfinance sector.”

A Broader Amazon Finance Push

The initiative aligns with Caja Cusco’s recent entry into the Amazonia Finance Network, an IFC-sponsored alliance of more than 60 institutions across 12 countries. The network aims to mobilize capital, share innovation, and scale sustainable finance solutions across the Amazon—where economic development and environmental protection are deeply intertwined.

As Peru looks to close its MSME financing gap while advancing climate and inclusion goals, the Caja Cusco bond offers a blueprint for how microfinance, sustainability-linked capital, and local institutions can work together to deliver impact at scale.