European Union (EU), European Bank for Reconstruction and Development (EBRD) and emerging market asset manager ILX Management teams are partnering to facilitate private sector financing in Eastern Europe, the Caucasus, the Western Balkans, Turkiye, the Southern and Eastern Mediterranean and Central Asia.
The partnership is expected to facilitate cofinancing of up to €300 million over the next three years by Dutch and other European pension funds. This investment strengthens the resources available for sustainable development, especially climate-smart solutions, digital transformation and financial inclusion in projects that have not benefited from private sector participation. These are supported by EU guarantees through the European Fund for Sustainable Development Plus (EFSD+) guarantee programme. The EFSD+ guarantee structure will allow ILX to co-invest with EBRD with the same risk/return profile.
The EBRD is committed to strengthening partnerships with private institutional investors in countries where it operates to support its goal of doubling private cofinancing by 2025. This partnership is an important part of that process. Developing a greener, more inclusive and more digital economy is at the heart of our operations in all regions where we operate.
Mobilizing private sector capital is also at the core of the European Union’s Global Gateway Strategy, which aims to deliver €300 billion of large-scale investment in sustainable, high-quality projects by 2027. This strategy will assist partner countries in their green digital transitions. We will also contribute to the achievement of the United Nations Sustainable Development Goals (SDGs).
With this partnership, ILX will offer a broader set of high-impact investment opportunities in EBRD countries that directly contribute to the SDGs in emerging markets. ILX currently manages ILX Fund I, which invests on behalf of major Dutch pension fund managers, including APG Asset Management. Other Dutch and European pension fund participants are also expected to join future ILX funds.
EBRD Chairman Odile-Renaud-Basso said, “The ability to bring together core partners for greater impact in supporting and developing the private sector is a key strength of the EBRD.” We are pleased to forge this dynamic partnership with the European Commission and ILX to further increase the participation of private institutional investors in support of our key shared strategic objectives. It is a testament to our track record of successfully supporting our clients, even in the most challenging circumstances, by investing in key economic sectors that have impact and drive long-lasting socio-economic change.
European Commission Executive Vice-President Valdis Dombrovskis said: “We welcome the partnership with EBRD and ILX as new benchmarks in development finance. This will provide other international financial institutions and private investors with a sustainable and green “It’s a new model that encourages us to step up our investment.” . Backed by EU budget guarantees, we will work with EBRD and ILX to increase private capital to partner countries to €300 million for projects in line with our policies and development goals. It will demonstrate that funding such investments in emerging markets can be done with lower risk than expected. And this is the model we plan to build in the future. ”
ILX CEO Manfred Shepherds said: “We are delighted to have established this important partnership with the EU and the EBRD, which will enable ILX to invest in private projects in Central and Eastern Europe, the Caucasus, the Southern and Eastern Mediterranean.” European Pension Fund representing investors in Central Asia. Partnering with EBRD to benefit from similar risk mitigation in these private projects that support the strategic goals of EFSD+ will enable us to contribute directly to sustainable development and climate-related investment in the EBRD region. . We look forward to a long-term partnership with the EBRD and the EU, and to invest on behalf of the European Pension Fund, which is becoming a major investor in sustainable development across emerging markets. ”
About ILX Management BV
ILX Management BV is an Amsterdam-based emerging market private credit management firm that invests in loans originated and originated by multilateral development banks and other development finance institutions. ILX offers massive investment opportunities in global development finance that directly contributes to his SDGs in emerging market and developing countries. ILX Fund I has received commitments of US$1.05 billion from leading Dutch pension providers, including APG Asset Management, the largest pension provider in the Netherlands. ILX invests in four major economic sectors: energy access and clean energy, sustainable industry and infrastructure, inclusive finance and food security. ILX was established with grant funding from the German Federal Ministry for Economic Cooperation (KfW) on behalf of the German Ministry for Development and Cooperation (BMZ), the Dutch Directorate General for International Cooperation and the UK Ministry of Foreign Affairs, Commonwealth and Development.