British International Investment (BII), United Kingdom government's development finance institution (DFI), and ILX Management, a Netherland-based debt market fund, have together agreed to commit $500 million to finance projects and businesses in Africa, Asia and the Caribbean.
The two firms will offer loans to sustainable development projects in the low income countries in the region in sectors spanning across sectors including renewable energy, infrastructure, financial services, manufacturing and agribusiness.
“This partnership has been driven by our shared view of the need to invest to meet the Sustainable Development Goals,” Nick O’Donohoe, chief executive officer, BII, said in a statement.
BII, formerly known as the CDC Group, previously said that it is aiming to tap into India’s credit market, which is gaining attention from multiple investors, VCCircle reported last month. With total assets of £8.1 billion ($9.9 billion) across 65 countries, BII makes venture capital and private equity-style investments across debt, equity and funds.
“This asset class remains nascent, comprising of just 3% of private credit globally, and is the natural next step for allocators of global private credit,” he added.
The DFI’s Head of India and Managing Director Manav Bansal had told VCCircle that the firm is also planning to grow its investments under climate-based theme funding circular economy, alternative energies, waste management, and other related verticals and the Caribbean.
Through the partnership, the two firms will establish a roadmap to mobilise private sector capital in high-impact private debt investment opportunities in the region.
“Working with BII, together we will increase financial capacity for project finance, financial services debt and private sector debt across Africa, Asia and the Caribbean,” said Manfred Schepers, CEO, ILX Management.
Amsterdam-based ILX management focused on emerging markets, funding projects originated and structured by Multilateral Development Banks and other Development Finance Institutions. It is in the process of raising a second fund with a targeted $2 billion corpus from European pension funds.
