EBRD, EU, ILX allocate €300 million to enhance private sector financing in Egypt and beyond

The partnership intends to facilitate co-financing by Dutch and other European pension funds, with a projected investment of up to 300 million euros over the next three years.

The announcement was made during the EBRD's annual meetings taking place in Uzbekistan.

This financing is expected to support sustainable development, particularly in areas such as climate-smart solutions, digital transformation, and financial inclusion for projects that lack access to private-sector participation.

These projects will benefit from EU guarantees through the European Fund for Sustainable Development Plus (EFSD+) guarantee programmes.

The EFSD+ guarantee structure will enable ILX to co-invest alongside the EBRD, sharing the same risk-return profile.

ILX Management is an Amsterdam-based emerging-market private credit asset manager which focuses on investing in loans originated and structured by multilateral development banks and other development finance institutions. It offers investment opportunities that directly contribute to the sustainable development goals (SDGs) in emerging markets and developing economies.

This partnership aims to foster the development of greener, more inclusive, and digitally-driven economies, which aligns with the core objectives of the EBRD across all regions where it operates, according to the bank.

Furthermore, mobilizing private-sector capital is a key aspect of the EU's Global Gateway strategy, which aims to deliver significant investments of 300 billion euros in sustainable and high-quality projects by 2027.

This strategy will support partner countries in their transition toward green and digital initiatives, as well as in achieving their SDGs agenda.

The EBRD’s Vice President for Banking Alain Pilloux told Ahram Online in March that the EBRD plans to invest over $1.4 billion in Egypt – the highest investment the bank has ever made in the country. 

In April, the bank approved a $100 million loan programme to Banque Misr, under its Financial Intermediaries Framework (FIF), to finance micro, small, and medium-sized enterprises (MSMEs).