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An agreement to scale up investments and spur institutional investor capital mobilisation for Sustainable Development Goals and climate-focussed private sector projects in Africa has been signed by two multilateral institutions.
This partnership has been signed between the African Development Bank (AfDB) and ILX Management B.V. (ILX) in Netherlands capital Amsterdam.
The new agreement will mobilise institutional investor capital in support of AfDB’s private sector loan operations focused on African countries; Partnership to support the UN SDGs and climate finance-related targets, enable investments in Africa for ILX’s European pension fund participants.
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The cooperation arrangement enables the AfDB to deliver on its ambition to mobilise financial resources from institutional investors to bridge the significant financing gap required to meet the Bank’s High Five priorities.
These are Light up and Power Africa; Feed Africa; Industrialize Africa; Integrate Africa and Improve the quality of life for the people of Africa.
This partnership will allow the Bank and ILX to support non-sovereign operations in these key priority sectors.
AfDB vice president and Chief Financial Officer, Hassatou N’Sele, said the institutions had a strong track record of structuring and financing projects with a strong development impact.
“We are very pleased to be partnering with ILX to mobilize institutional capital with a Sustainable Development Goals focus. Our objectives are aligned, and the African Development Bank has a strong track record of structuring and financing projects with a strong development impact,” Mr N’Sele said.
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ILX’s investors are the Dutch pension fund asset managers APG Asset Management, with other Dutch and European pension fund participants in ILX successor funds expected to join in the future.
ILX Fund provides a scalable US$1 billion private credit investment strategy to be deployed across emerging and developing countries, co-financing with global Multilateral Development Banks (MDB) and other DFIs.
ILX Founder and Chief Executive Officer, Manfred Schepers, said the institution was looking forward to a long-term partnership with AfDB on behalf of its pension fund investors, which were becoming key counterparts to finance SDG and climate-finance projects across the emerging markets.
“We are delighted to have established this strategic partnership. The launch of this partnership demonstrates AfDB’s strong commitment to engage actively with European pension funds, as a key partner in its mobilization effort and contribution to sustainable growth across the African continent.
“We look forward to a long-term partnership with AfDB on behalf of our pension fund investors, which are becoming key counterparts to finance SDG and climate-finance projects across the emerging markets,” he said.
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