British International Investment (BII), the UK’s development finance institution and impact investor, and ILX, an Amsterdam-based emerging market private debt asset manager, have completed their first joint transaction to expand financing for micro, small and medium-sized enterprises (MSMEs) and agricultural businesses in East Africa.

The $15 million transaction marks ILX’s first sub-participation in a BII investment, since the two institutions formalised their partnership to increase institutional capital flowing into high-impact opportunities in emerging markets. 

Holger Rothenbusch, Managing Director and Head of Infrastructure and Climate at BII, said: “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.”

This investment will support an East African financial institution to scale its lending to MSMEs and agribusinesses, two key pillars that support inclusive economic growth in the region. This will address the challenge of limited long-term commercial financing available in the sector. 

Through the collaboration, BII and ILX expect to co-finance up to $500 million of debt transactions, supporting long-term sustainable development across markets in Africa, Asia, and the Caribbean. The announcement under this partnership highlights its potential to mobilise further capital at scale.

The transaction underscores BII’s continued commitment to crowding in commercial capital alongside its own and highlights the efficiency of ILX’s strategy of co-financing with MDBs and DFIs to provide institutional investors with access to high-quality, impact-focused private credit opportunities.

Manfred Schepers, CEO of ILX, said: “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.”