African Development Bank And ILX Management B.V. Complete First Joint Deal To Mobilise Climate-Focused European Capital For Africa

The African Development Bank Group and ILX Management B.V. have successfully completed their first joint transaction, marking a key step in their partnership to bring more European institutional investment into climate-focused infrastructure projects across Africa. As part of this deal, ILX invested $40 million through a funded risk participation in a senior debt facility arranged by the African Development Bank. The financing supports a renewable energy company developing a large-scale 1.1-gigawatt wind power project in Egypt. This investment is included within a broader $140 million loan package structured by the Bank.

This collaboration builds on a partnership agreement signed between the two organizations in 2023, which aims to scale up investments and attract institutional capital—such as pension funds—into projects that support the Sustainable Development Goals and climate-focused private sector initiatives across Africa. The wind project is classified as climate mitigation finance under the Bank’s framework.

It is expected to reduce carbon emissions by generating clean electricity while supporting Egypt’s shift toward renewable energy. The project will also help address power shortages linked to fossil fuel constraints, reduce reliance on natural gas and heavy fuel oil, and lower the country’s need for fuel imports—thereby helping conserve foreign exchange reserves.

At the same time, it contributes to increasing the share of renewable energy in Egypt’s overall energy mix, in line with its climate commitments. This first transaction highlights how the AfDB and ILX partnership is being put into action. It demonstrates a practical approach to attracting private institutional investors into large-scale, climate-aligned infrastructure projects. The collaboration combines the Bank’s strong regional presence and development expertise with ILX’s strategy of directing long-term European pension capital into impactful investments that meet environmental, social and governance standards.

The investment also supports the African Development Bank’s long-term strategic goals under the leadership of Dr Sidi Ould Tah. These include improving access to capital, building climate-resilient infrastructure, strengthening financial systems, and advancing sustainable economic growth through clean energy development.

Dr Sidi Ould Tah emphasized that private sector participation is essential for Africa’s growth, noting that sustainable and inclusive development cannot be achieved without it. He highlighted that mobilising private investment remains a central priority for the Bank in addressing the continent’s financing gaps. He also stated that this transaction shows how partnerships like the one with ILX can help channel long-term capital into projects that drive both development and climate progress.

Manfred Schepers described the deal as an important milestone for ILX, pointing out that the African Development Bank’s strong track record and deep regional expertise give institutional investors the confidence to invest at scale. He added that the transaction demonstrates how development finance partnerships can effectively mobilise pension capital to support climate-focused growth, particularly in emerging markets. Sjoerd Sjoerdsma also highlighted the importance of such partnerships, noting that they help unlock large-scale investment by connecting institutional investors with impactful projects.

He pointed out that the initiative strengthens Egypt’s energy security and economic resilience, which is especially important in today’s global environment. He also acknowledged the support provided by the Netherlands, Germany and the United Kingdom in helping ILX get started and expressed confidence that more such transactions will follow. Overall, this first deal between the African Development Bank and ILX reflects a growing effort to combine public and private resources to finance sustainable infrastructure, accelerate the clean energy transition, and support long-term economic development across Africa.