The African Development Bank Group (AfDB) and ILX Management B.V. (ILX) have completed their first joint transaction, strengthening their partnership to attract European institutional capital for climate-focused infrastructure projects across Africa.
ILX invested $40 million through a funded risk participation program in a senior debt facility arranged by the African Development Bank. The funding supports a renewable energy company developing a 1.1-gigawatt wind power project in Egypt and forms part of a $140 million loan structured by the Bank Group.
The Bank Group and ILX signed a partnership agreement in 2023 to expand investments and attract more institutional investor capital for Sustainable Development Goals and climate-focused private sector projects in the Bank Group’s regional member countries.
The project qualifies as climate mitigation finance under the African Development Bank’s climate finance framework and will help cut emissions through renewable electricity generation. It also supports Egypt’s energy transition by easing power supply pressures linked to fossil fuel shortages, reducing dependence on natural gas and heavy fuel oil, lowering fuel import costs, and increasing renewable energy in the country’s power mix in line with national climate commitments.
This first transaction shows how the strategic partnership between AfDB and ILX is being put into action to increase institutional investor participation in Paris-aligned private sector projects without sovereign guarantees. The collaboration supports the Bank Group’s goal of mobilizing private capital for development and climate action while aligning with ILX’s strategy of directing long-term European pension capital into high-impact investments alongside multilateral development banks with strong regional expertise and solid environmental, social, and governance standards.
The investment supports the African Development Bank’s 10-Year Strategy and the Four Cardinal Points vision of President Dr. Sidi Ould Tah, particularly by improving access to capital, building climate-resilient infrastructure, and reforming financial systems and institutions, while also advancing wider climate goals through clean energy infrastructure and sustainable growth.
source: www.afdb.org
African Energy Council