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.
This is 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.
This investment supports the African Development Bank’s Ten-Year Strategy and the Four Cardinal Points of its President, Dr Sidi Ould Tah, including enhanced access to capital, building climate-resilient infrastructure, reforming financial systems and institutions, and advancing broader climate objectives through clean energy infrastructure and sustainable growth.
