This co-investment mobilizes European institutional capital for climate-friendly infrastructure and the energy transition.
The African Development Bank Group (www.AfDB.org) and ILX Management B.V. (ILX) have finalized their first transaction, marking a significant milestone in their partnership aimed at mobilizing European institutional capital for climate-friendly infrastructure projects in Africa.
ILX has invested $40 million through a funded risk participation in a senior loan granted by the African Development Bank, supporting a renewable energy company developing a 1.1-gigawatt wind power project in Egypt. This investment is part of a $140 million loan provided by the Bank Group.
The Bank Group and ILX signed a partnership agreement in 2023 to increase investment and stimulate capital mobilization from institutional investors for Sustainable Development Goals (SDGs) and private sector projects, particularly those focused on climate, within the Bank Group’s regional member countries.
Driving the Energy Transition
This project, classified as climate change mitigation financing under the African Development Bank’s climate finance framework, contributes directly to emissions reduction through electricity generation from renewable sources. It supports Egypt’s energy transition by:
- Addressing electricity supply constraints related to fossil fuel shortages.
- Reducing dependence on natural gas and heavy fuel oil.
- Preserving foreign exchange reserves by limiting fuel imports.
- Increasing the share of renewable energy in the national energy mix, in line with the country’s climate commitments.
“The private sector is an indispensable catalyst for African growth; without its integration, sustainable and inclusive development remains out of reach.”
This first transaction illustrates the concrete implementation of the strategic partnership between the African Development Bank and ILX to increase institutional investor participation in non-sovereign private sector operations aligned with the Paris Agreement. This collaboration reflects the Bank Group’s mandate to mobilize private capital for development and climate action, as well as ILX’s strategy of channeling long-term European pension fund capital into high-impact investments alongside multilateral development banks with strong regional presence and robust environmental, social, and governance (ESG) standards.
A Shared Strategic Vision
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 by improving access to capital, building climate-resilient infrastructure, and reforming financial institutions and systems while advancing broader climate goals through clean energy infrastructure and sustainable growth.
“The private sector is an indispensable catalyst for African growth; without its integration, sustainable and inclusive development remains out of reach. Therefore, the African Development Bank prioritizes the mobilization of private investment as an essential pillar to bridge the continent’s substantial financing gaps,” stated Dr. Sidi Ould Tah, President of the African Development Bank Group.
“This first transaction with ILX illustrates how the Bank continues to mobilize long-term institutional capital to support sustainable infrastructure in our regional member countries. By working with partners such as ILX, the Bank accelerates Africa’s energy transition while maintaining a strong development impact and rigorous ESG standards,” he continued.
Manfred Schepers, CEO of ILX, said: “The completion of our first transaction with the African Development Bank is a major step for ILX. The Bank’s deep regional expertise in Africa and its proven track record in structuring high-impact projects give institutional investors the confidence to deploy capital at scale. This investment demonstrates how development finance partnerships can mobilize pension funds to support climate-related growth in emerging markets and Africa in particular.”
Sjoerd Sjoerdsma, the Dutch Minister for Foreign Trade and Development Cooperation, added: “This transaction shows the power of multilateral institutions and partnerships. ILX and the African Development Bank are building bridges, allowing institutional investors to step in and unlock large-scale investments. This project strengthens Egypt’s energy security and economic resilience—essential elements in the current context. The Netherlands, alongside Germany and the United Kingdom, supported ILX during its startup phase and continues to support this initiative. We congratulate the African Development Bank and ILX for demonstrating that development finance is a scalable asset class, and we look forward to many more transactions to come.”
About the African Development Bank Group: The African Development Bank Group is Africa’s premier development finance institution. It comprises three distinct entities: the African Development Bank, the African Development Fund, and the Nigeria Trust Fund. With a presence in 44 African countries and an external office in Japan, the Bank contributes to the economic development and 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 specializing in private debt investments in emerging markets and developing economies. ILX mobilizes long-term pension funds by investing in loan participations granted by multilateral development banks and leading development finance institutions. ILX focuses on investments aligned with the Sustainable Development Goals (SDGs) and climate action across four priority sectors: energy access and clean energy, sustainable industry and infrastructure, inclusive finance, and food security.
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