Nigeria has emerged as one of the countries set to benefit from a groundbreaking initiative in co-financing debt transactions. Under a Memorandum of Understanding (MoU) signed between British International Investment (BII) and ILX Management, up to $500 million will be invested to support long-term sustainable development in developing economies and low-income countries across Africa, Asia, and the Caribbean.
The partnership between BII, the UK’s Development Finance Institution, and ILX, an SDG and Climate-Focused Emerging Market Private Debt Fund based in Amsterdam, aims to channel investments into various sectors, including renewable energy, infrastructure, financial services, manufacturing, and agribusiness. The goal is to drive capital flow into impactful businesses and projects that will contribute to productive, sustainable, and inclusive growth.
Through this collaboration, BII and ILX will combine their expertise, resources, and financial firepower to maximize the potential for positive change in Africa, Asia, and the Caribbean. The partnership will involve the exchange of information on prospective projects, emerging technologies, and financial innovation, as well as the establishment of a roadmap to mobilize private sector capital.
With a focus on providing institutional investors with access to high-impact private debt investment opportunities, BII and ILX aim to bridge the finance gap faced by many businesses in these regions. At present, private credit accounts for only 3% of global private credit, making it a relatively untapped asset class.
Nick O’Donohoe, CEO of BII, emphasized the importance of the partnership in meeting the Sustainable Development Goals (SDGs) and creating job opportunities in developing economies. He stated, “This asset class remains nascent… and is the natural next step for allocators of global private credit.”
Manfred Schepers, CEO of ILX Management, highlighted ILX’s extensive experience in investing in climate and SDG-targeted projects across emerging economies globally. He expressed confidence in the partnership’s ability to increase financial capacity for project finance, financial services debt, and private sector debt across Africa, Asia, and the Caribbean.
The initiative has garnered support from UK Minister for Development and Africa, Andrew Mitchell. Speaking about the partnership, he commended BII’s leading role in mobilizing private finance to achieve the UN Sustainable Development Goals. He expressed pride in the early-stage funding provided by FCDO (Foreign, Commonwealth & Development Office) to ILX, which has since secured over $1 billion in commitments to its first investment fund.
The partnership between BII and ILX represents a significant step forward in bridging the finance gap and supporting sustainable development in Nigeria and other countries across Africa, Asia, and the Caribbean. It promises to improve access to renewable energy, quality infrastructure, and ultimately, create an environment conducive for businesses to thrive.
