Arab Finance: The European Bank for Reconstruction and Development (EBRD) has signed a partnership agreement with the European Union (EU) and the emerging-market asset manager ILX Management to increase private-sector financing in countries where the EBRD operates, including Egypt, to up to €300 million over the upcoming three years, according to the EBRD’s website on May 17th.
To be co-financed by Dutch and other European pension funds, the funds will be dedicated to boost available finance for sustainable development projects, especially in the fields of climate-smart solutions, digital transformation, and financial inclusion.
Investments in these countries will be supported by the EU guarantees via the European Fund for Sustainable Development Plus (EFSD+) Guarantee Program.
The EFSD+ guarantee structure will allow ILX to co-invest with the EBRD, while sharing the same risk-return profile.
EBRD is working on strengthening its partnerships with private institutional investors in its countries of operation, to back its goal of doubling private co-financing by 2025.