The African Development Bank Group (AfDB) and ILX Management B.V. (ILX) have completed their first transaction to support a renewable energy company developing a 1.1-gigawatt (GW) wind power project in Egypt.
The partnership marks a milestone in mobilising European institutional capital for climate-aligned infrastructure across the continent.
The investment forms part of a $140 million loan arranged by the AfDB. ILX is investing $40 million through a funded risk participation in a senior debt facility originated by the bank.
The project is classified as climate mitigation finance and aims to reduce emissions through renewable electricity generation. It supports Egypt's energy transition by addressing power supply constraints linked to fossil fuel shortages and reducing reliance on natural gas and heavy fuel oil.
By limiting fuel imports, the project helps conserve foreign exchange reserves and increases the share of renewable energy in the national energy mix.
This aligns with the AfDB's 10-year strategy to build climate-resilient infrastructure and reform financial systems while advancing sustainable growth.
Dr. Sidi Ould Tah, AfDB president, commented: "The private sector is an indispensable catalyst for African growth; without its integration, sustainable and inclusive development remain out of reach. Consequently, the AfDB prioritises the mobilisation of private investment as a core pillar for addressing the continent's substantial funding deficits.”
Manfred Schepers, CEO of ILX, added: "Completing our first transaction with the AfDB is a significant milestone for ILX. The AfDB's deep regional expertise across Africa and proven track record in structuring high-impact projects give institutional investors confidence to deploy capital at scale.
“This investment demonstrates how development finance partnerships can mobilise pension capital to support climate-aligned growth in emerging markets and Africa in particular."
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