African Development Bank and ILX sign partnership to mobilize European institutional capital for sustainable projects across Africa | African Development Bank

The African Development Bank and ILX Management BV (ILX) today signed a partnership agreement to scale up investments and encourage the mobilization of institutional capital for investors for sustainable development goals and climate-focused private sector projects in the regional member states of the banking group.

The signing ceremony took place at the office of ILX Management in the Dutch capital Amsterdam.

The investors of ILX are the Dutch pension fund asset managers APG Asset Management, (on behalf of ABP and bpfBOUW) and Achmea Investment Management, (on behalf of Pensioenfonds Vervoer), with other Dutch and European pension fund participants also expected in ILX successor funds. the future. ILX Fund I offers a $1 billion scalable private credit investment strategy deployable in emerging and developing countries, co-financing with global multilateral development banks (MDB) and other DFIs.

The partnership arrangement enables the African Development Bank to deliver on its ambition to mobilize financial resources from institutional investors to bridge the significant funding gap needed to meet the bank’s High Five priorities: Light up and Power Africa; FeedAfrica; industrialize Africa; Integrate Africa and improve the quality of life of the people of Africa. This partnership allows the bank and ILX to support non-sovereign activities in these key priority sectors. The High 5s are inextricably linked to the SDGs.

At the same time, the scheme offers ILX Fund pension fund participants the opportunity to benefit from the AfDB’s long-standing track record of successfully investing in key economic sectors across Africa. All loan investments are focused on SDG or Climate Finance while offering attractive risk-adjusted returns, combined with robust environmental, social and governance (ESG) protections.

APG Asset Management, the largest pension provider in the Netherlands, together with Achmea Investment Management, has committed $1,050 million to the Emerging Market private credit fund ILX Fund I, to invest in four key economic sectors; access to energy and clean energy, sustainable industry and infrastructure, inclusive finance and food security. ILX invests in loan participations arranged by multilateral development banks and other leading DFIs to support their SDG and climate focused projects in emerging markets and developing economies.

In the development phase, ILX received grants from: KfW, the German development bank, on behalf of the Federal Ministry of Economic Cooperation and Development (BMZ); the Ministry of Foreign Affairs of the Netherlands; and the British Foreign, Commonwealth and Development Office. They supported ILX’s role in mobilizing large-scale pension fund capital for the leading MDBs and other DFIs to support their SDGs and climate finance related investments in emerging markets.

Hassatou N’Sele, Vice President and Chief Financial Officer of the African Development Bank Group, commented: “We are very excited to partner with ILX to mobilize institutional capital with a focus on sustainable development goals. Our objectives are aligned and the African Development Bank has a strong track record in structuring and financing projects with a strong development impact.”

Manfred Schepers, founder and CEO of ILX, said: “We are delighted to have established this strategic partnership. The launch of this partnership demonstrates AfDB’s strong commitment to actively working with European pension funds as a key partner in its mobilization efforts and contribution to sustainable growth on the African continent. We look forward to a long-term partnership with AfDB on behalf of our pension fund investors, who will become key counterparts to fund SDG and climate finance projects in emerging markets.”

Kitty van der Heijden, Director-General for International Cooperation, Ministry of Foreign Affairs, The Netherlands said: “With this agreement, Dutch pension funds, ILX and the African Development Bank are joining forces to increase investments in the SDG and climate goals on the African continent. A very welcome step as the challenges of achieving the SDGs and the need to integrate global climate commitments into African countries’ development trajectories are more urgent than ever.”

About the African Development Bank Group

The African Development Bank Group (AfDB) is the leading development finance institution in Africa. It consists of three different 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 social progress of its 54 regional member states.

For more information: www.afdb.org

About ILX Management BV

ILX Management BV is the Amsterdam-based manager of ILX Fund I, an emerging markets private credit fund that invests in loan participations developed and structured by multilateral development banks and other development finance institutions. ILX aims to create large-scale investment opportunities in global development finance that directly contribute to sustainable development in emerging markets. ILX was created with a grant from the Federal Ministry of Economic Cooperation (KfW) on behalf of the German Ministry for Development Cooperation (BMZ), the Dutch Directorate-General for International Cooperation and the British Foreign, Commonwealth and Development Office.

For more information: www.ilxfund.com