European Institutions and ILX Management Collaborate to Support Sustainable Development in Emerging Markets

European Institutions and ILX Management Collaborate to Support Sustainable Development in Emerging Markets

(IN BRIEF) The European Bank for Reconstruction and Development (EBRD), in collaboration with the European Union (EU) and ILX Management, has formed a partnership to enhance private-sector finance in emerging markets. The initiative aims to attract investments of up to €300 million over the next three years from Dutch and other European pension funds. The funding will support sustainable development projects in areas such as climate-smart solutions, digital transformation, and financial inclusion. The partnership aligns with the EBRD’s goal of doubling private co-financing by 2025 and the EU’s Global Gateway strategy for large-scale investments in sustainable projects. The collaboration will provide ILX Management with impactful investment opportunities in EBRD countries, contributing to the United Nations Sustainable Development Goals (SDGs).

(PRESS RELEASE) LONDON, 17-May-2023 — /EuropaWire/ — The European Bank for Reconstruction and Development (EBRD), a multilateral developmental investment bank, in collaboration with the European Union (EU) and ILX Management, is embarking on a strategic partnership aimed at bolstering private-sector finance in emerging markets. The initiative targets regions including eastern Europe, the Caucasus, the Western Balkans, Türkiye, the southern and eastern Mediterranean, and Central Asia.

Through this partnership, Dutch and other European pension funds are expected to co-finance projects with investments of up to €300 million over the next three years. The financing will enhance the availability of funds for sustainable development, with a specific focus on climate-smart solutions, digital transformation, and financial inclusion. EU guarantees provided through the European Fund for Sustainable Development Plus (EFSD+) Guarantee Programme will support these investments. The EFSD+ guarantee structure enables ILX to co-invest with the EBRD, offering the same risk-return profile.

The EBRD is actively seeking to strengthen its partnerships with private institutional investors to double private co-financing by 2025. This collaboration plays a crucial role in achieving that goal, as it aligns with the EBRD’s mission of promoting greener, more inclusive, and digitally advanced economies across its regions of operation.

Mobilizing private-sector capital is also a key focus of the European Union’s Global Gateway strategy, aiming to secure €300 billion in investments for sustainable and high-quality projects by 2027. The strategy aims to support partner countries in their transition to greener and more digital economies, while aligning with the United Nations Sustainable Development Goals (SDGs).

The partnership will provide ILX Management with a wider range of impactful investment opportunities in EBRD countries, directly contributing to the SDGs in emerging markets. Currently managing ILX Fund I, which invests on behalf of prominent Dutch pension-fund managers, including APG Asset Management, ILX expects additional Dutch and European pension funds to join future ILX funds.

EBRD President Odile Renaud-Basso said: “The ability to bring our core partners together for greater impact to support and develop the private sector is a key strength of the EBRD. I am delighted that we have been able to forge this dynamic partnership with the European Commission and ILX to increase further the participation of private institutional investors in support of key shared strategic objectives. It is testimony to our track record of successfully supporting our clients, no matter how difficult the circumstances, by investing in key economic sectors that deliver impactful, long-lasting socioeconomic change.

European Commission Executive Vice President Valdis Dombrovskis said: “I welcome this partnership with the EBRD and ILX, which sets down a new marker in development finance – a new model that can inspire other international financial institutions and private investors to step up sustainable and green investment. Backed by the EU budget guarantee, and together with the EBRD and ILX, we will boost private capital to our partner countries to €300 million for projects that are aligned with our policy and development objectives. It will demonstrate that placing capital for such investments in emerging markets can be done at a lower risk than might be expected. And it is a model we intend to build on in future.”

Manfred Schepers, CEO of ILX, said: “We are delighted to have established this important partnership with the EU and EBRD, which will enable ILX to invest in private-sector projects in central and eastern Europe, the Caucasus, the southern and eastern Mediterranean and Central Asia on behalf of our European pension-fund investors. By partnering with the EBRD and being able to benefit from the same risk mitigation in these private-sector projects that support the EFSD+ strategic objectives, we will be able to directly contribute to sustainable development and climate-related investments in the EBRD regions. We look forward to this long-term partnership with the EBRD and EU and to investing on behalf of European pension funds, which are becoming key investors in sustainable development across emerging markets.”

About ILX Management B.V.

ILX Management B.V. is an Amsterdam-based emerging-market private credit asset manager that invests in loans originated and structured by multilateral development banks and other development finance institutions. ILX provides large-scale investment opportunities in global development finance that contribute directly to the SDGs in emerging markets and developing economies. ILX Fund I has received commitments of US$ 1.05 billion from leading Dutch pension providers, including APG Asset Management, the Netherlands’ largest pension provider. ILX invests in four key economic sectors: energy access and clean energy, sustainable industry and infrastructure, inclusive finance and food security. ILX was created with grant support from the German Federal Ministry of Economic Cooperation (KfW) on behalf of the German Ministry for Development Cooperation (BMZ), the Netherlands’ Directorate General for International Cooperation and the UK Foreign, Commonwealth and Development Office.

Media contact:

Tel: +44 207 338 7805
Email: press@ebrd.com

SOURCE: EBRD