EBRD and ILX form €500m climate and SDG partnership

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EBRD committed to mobilising more private sector finance, with ILX becoming a key partner in catalysing new investment from pension funds.

The European Bank for Reconstruction and Development (EBRD) and ILX Management (ILX) have agreed a partnership to mobilise €500m of European pension fund capital. The investments will be made to support the transition to more sustainable, low-carbon economies across the EBRD regions and Amsterdam-based ILX will be investing on behalf of European pension providers.

Under the new partnership, the EBRD and ILX, an emerging market asset manager, will launch an institutional co-investment programme. It will have a target of €500 million over the next five years, supporting the EBRD’s ambition to double private co-financing by 2025 with a focus on climate action.

Jürgen Rigterink, first vice president at the EBRD, commented: “The cooperation with ILX provides the EBRD with the opportunity to partner with leading European pension funds in co-financing the bank’s important SDG and climate-finance-related projects. ILX plays a key bridging role between institutional investors and development finance institutions to enable a critical market expansion in addressing our SDG and climate-related challenges.”

The programme offers investors the opportunity to benefit from the EBRD’s record of successfully investing in key economic sectors across its regions.  All investments will be climate and SDG-linked, combined with robust environmental, social and governance (ESG) safeguarding.

Manfred Schepers, co-founder and CEO of ILX, said: “We are delighted to have established this partnership with the EBRD. We look forward to this long-term co-financing partnership and working closely with the EBRD in supporting and financing its SDG and climate-mitigation and adaptation projects across the economies where it invests.”

The announcement comes as the EBRD also expands its joint venture with Greek real-estate developer Dimand SA, to support a pipeline of new green buildings in Greece. The EBRD has invested €50m into the venture which has a focus on green offices, mix-use projects and hotels.