• AfDB structured a $140 million loan for a 1.1 GW wind project, with ILX investing $40 million

• The deal uses a funded risk participation model to attract European pension funds

• The project supports Egypt’s target to reach 42% renewable energy by 2030.

The African Development Bank announced on Friday, April 17, the completion of its first joint transaction with ILX Management, an Amsterdam-based asset manager. Under this partnership, ILX invested $40 million in a $140 million loan structured by the AfDB to finance a 1.1 GW wind project in Egypt.

The financing structure relies on a funded risk participation mechanism, under which the lending bank partners with a financial investor to share both funding and credit risk. In this case, ILX assumed part of the financing and associated exposure linked to the loan initially arranged by the AfDB. This structure allows the bank to attract institutional investors, particularly European pension funds, to complex infrastructure projects.

Mobilizing the Private Sector in the Energy Transition

This financing marks the first concrete outcome of a partnership signed in 2023 between the AfDB and ILX Management. The initiative targets non-sovereign operations aligned with climate objectives.

The project involves the Suez wind farm, with a capacity of 1.1 GW. The AfDB approved financing of up to $170 million for the project in December 2024. ACWA Power is developing the project along the Gulf of Suez, positioning it as one of the largest wind installations in the country. The project operates under a 25-year power purchase agreement with the state-owned Egyptian Electricity Transmission Company (EETC), which guarantees long-term offtake.

“The private sector is an essential catalyst for Africa’s growth; without its integration, sustainable and inclusive development remains out of reach. Therefore, the African Development Bank prioritizes mobilizing private investment as a key pillar to bridge the continent’s substantial financing gaps,” said AfDB President Dr Sidi Ould Tah.

According to the institution, the investment will reduce Egypt’s reliance on fossil fuels, particularly natural gas, and limit energy imports. The project aligns with Egypt’s strategy to increase the share of renewable energy to 42% of the electricity mix by 2030 and 60% by 2040, according to the State Information Service.

Abdoullah Diop