The African Development Bank Group (AfDB) and ILX Management B.V. (ILX) have completed their first transaction, marking an important milestone in their partnership to mobilise European institutional capital for climate-aligned infrastructure projects across Africa.
ILX has invested $40 million through a funded risk participation in a senior debt facility originated by the African Development Bank, supporting a renewable energy company developing a 1.1-Gigawatt wind power project in Egypt. The investment forms part of a $140 million loan arranged by the Bank Group.
The Bank Group and ILX signed a partnership agreement in 2023 to scale up investments and spur institutional investor capital mobilization for Sustainable Development Goals and climate-focused private sector projects in the Bank Group's regional member countries.
The project is classified as climate mitigation finance under the African Development Bank's climate finance framework, and directly contributes to emissions reduction through renewable electricity generation. It supports Egypt's energy transition by addressing power supply constraints linked to fossil fuel shortages, reducing reliance on natural gas and heavy fuel oil, conserving foreign exchange reserves by limiting fuel imports, and increasing the share of renewable energy in the national energy mix in line with the country's climate commitments.
This first transaction demonstrates the practical implementation of the strategic partnership between AfDB and ILX to scale up institutional investor participation in Paris-aligned, non-sovereign private sector operations. The collaboration reflects the Bank Group's mandate to mobilise private capital for development and climate action, and ILX's strategy of channeling long-term European pension capital into high-impact investments, alongside multilateral development banks with strong regional presence and robust environmental, social and governance standards.
The investment contributes to the African Development Bank's Ten-Year Strategy and the Four Cardinal Points strategic vision of its President Dr Sidi Ould Tah, notably, enhanced access to capital, building climate-resilient infrastructure and reforming financial systems and institutions, while advancing broader climate objectives through clean energy infrastructure and sustainable growth.
AfDB President Dr Sidi Ould Tah, said: "The private sector is an indispensable catalyst for African growth; without its integration, sustainable and inclusive development remain out of reach. Consequently, the African Development Bank prioritizes the mobilization of private investment as a core pillar for addressing the continent's substantial funding deficits."
He added: "This first transaction with ILX illustrates how the Bank continues to mobilise long-term institutional capital in support of sustainable infrastructure across our regional member countries. By working with partners such as ILX, the Bank is accelerating Africa's energy transition while maintaining strong development impact and rigorous ESG standards."
Manfred Schepers, Chief Executive Officer of ILX, said: "Completing our first transaction with the African Development Bank is a significant milestone for ILX. AfDB's deep regional expertise across Africa and proven track record in structuring high-impact projects gives institutional investors confidence to deploy capital at scale. This investment demonstrates how development finance partnerships can mobilise pension capital to support climate-aligned growth in emerging markets and Africa in particular."
Sjoerd Sjoerdsma, Minister of Foreign Trade and Development Cooperation, said: "This transaction shows the power of multilateral institutions and partnerships. ILX and the AfDB are building bridges, allowing institutional investors to step in and unlocking investment at scale. The project strengthens Egypt's energy security and economic resilience, highly relevant in today's context. The Netherlands, together with Germany and the UK, supported ILX in the start-up phase and continue to support this agenda. We commend the AfDB and ILX for demonstrating that development finance is a scalable asset class, and look forward to many more transactions ahead."
About the African Development Bank Group: The African Development Bank Group (AfDB) is Africa's premier development finance institution. It comprises three distinct entities: the African Development Bank (AfDB), the African Development Fund (ADF) and the Nigeria Trust Fund (NTF). On the ground in 44 African countries with an external office in Japan, the AfDB contributes to the economic development and the social progress of its 54 regional member states. Website: www.afdb.org
About ILX Management B.V. (ILX): ILX is an Amsterdam-based asset manager specialising in private debt investments across Emerging Markets and Developing Economies. ILX mobilises long-term pension capital by investing in loan participations originated by the Multilateral Development Banks and leading Development Finance Institutions. ILX focuses on SDG- and climate-aligned investments across four priority sectors: energy access and clean energy, sustainable industry and infrastructure, inclusive finance, and food security.
The ILX Funds are backed by leading European pension investors and provide a scalable private debt strategy designed to deliver attractive risk-adjusted returns alongside measurable development and climate impact
Contact:
- African Development Bank Group: Amba Mpoke-Bigg; Communication and External Relations Department; email: [email protected]
- ILX: Guillaume Le Bris:[email protected]
