The transaction, valued at $15 million, represents ILX’s first sub-participation in an investment originated by BII.

It follows the formal partnership between the two institutions designed to channel more institutional capital into development-focused investments across emerging markets.

The funding will be directed to an East African financial institution, enabling it to expand lending to micro, small and medium-sized enterprises (MSMEs) as well as businesses operating in the agricultural sector.

Improved access to financing remains a major barrier for many small firms in the region, particularly those involved in agriculture and related value chains.

BII plays a major role in mobilising private capital to support sustainable economic development across Africa, Asia and other emerging markets.

In recent years, Africa has become a central focus of BII’s investment strategy, with the institution significantly increasing its funding commitments across the continent.  

The collaboration with ILX forms part of a broader effort to bring more institutional investors, such as pension funds, into development finance by creating investment opportunities that combine financial returns with measurable social impact.

Holger Rothenbusch, managing director and head of infrastructure and climate at BII, said the deal demonstrates how development finance institutions can attract additional capital into sectors that support economic growth.

“Completing our first transaction with ILX under this partnership demonstrates how BII can originate high-quality opportunities that attract institutional investment into the sectors that matter most for inclusive and sustainable growth in our markets. By working together, we are creating a pathway to increasing capital availability to our markets that can deliver development impact at scale,” Holger said.

For ILX, the investment also highlights the growing potential of private debt as a tool for financing development projects in emerging markets.

Manfred Schepers, CEO of ILX, said the partnership provides institutional investors with greater confidence to participate in these types of investments.

“Completing our first transaction with BII demonstrates the scalability and strength of the development finance private debt asset class. BII’s longstanding expertise, resources and approach to originating high-quality opportunities provide pension funds with the confidence to invest in impactful, well-structured investments across emerging markets.”

Through their partnership, BII and ILX aim to mobilize more private sector funding for businesses and projects that drive sustainable development, particularly in sectors such as financial services, agriculture and infrastructure across emerging economies.