2025 Sustainability Report

ILX was established to mobilise institutional capital at scale towards sustainable development and climate action in emerging markets and developing economies. By investing alongside Multilateral Development Banks (MDBs) and Development Finance Institutions (DFIs), ILX provides institutional investors with access to private debt opportunities that deliver attractive risk-adjusted returns alongside measurable development outcomes across emerging markets.

2025 marked another year of significant growth. By year-end, ILX had USD 1.4 billion investments across 71 investments in 29 countries, compared with USD 1.07 billion across 54 investments in 20 countries at the end of 2024. During 2025 alone, ILX completed 22 new investments in 19 countries, representing approximately USD 500 million.

Key results at year-end 2025

• USD 1.4 billion committed across the portfolio
• 71 Investments
• 29 Countries
• 92,278 direct and indirect jobs supported
• 43% volume weighted climate finance loans in the portfolio
• 1,497 MW renewable energy generation capacity installed
• 2.06 million tCO2e actual annual avoided emissions from financed investments

ILX’s investments support a broad range of real-economy outcomes across four core sustainability themes: Energy Access & Clean Energy, Inclusive Finance, Sustainable Industry & Infrastructure, and Food Security. Portfolio investments range from renewable energy and transport infrastructure to financial inclusion, education and agricultural value chains.

A practical model for institutional capital mobilisation

ILX’s model is built around partnerships with MDBs and DFIs, which originate and structure investments in emerging markets and bring local knowledge, environmental and social safeguards and extensive on-the-ground experience. ILX performs its own investment, credit and sustainability assessment and provides institutional investors with diversified access to these transactions.

The objective is not simply to increase capital flows, but to demonstrate that development finance can become a scalable institutional asset class: one in which investment discipline, risk-adjusted financial returns and measurable development outcomes reinforce one another.

Managing climate physical risks as investment risk

A key focus in 2025 was the further integration of physical climate risk into ILX’s investment and credit process. ILX integrates climate physical risk considerations throughout the

investment process to identify vulnerabilities, adaptation measures, long-term resilience of assets and businesses across EMDEs.

At year-end, 52% of portfolio exposure was assessed as low physical climate risk, 41% as medium risk and 7% as high risk, with higher-risk exposures actively monitored and mitigation measures incorporated where appropriate.

From ambition to measurable outcomes

The portfolio increasingly demonstrates what institutional development finance can deliver in practice. Current investments include renewable energy projects, sustainable infrastructure, financing for women-led and rural businesses, education, and agricultural value chains across emerging markets.

The report distinguishes between outcomes already achieved and those expected as projects become fully operational. This includes 1,497 MW of renewable energy capacity already installed and approximately 2.06 million tonnes of annual avoided emissions, alongside further expected climate and development outcomes from the existing portfolio.

Looking ahead

ILX’s ambition is to continue expanding institutional participation in development finance and to mobilise more long-term capital towards sustainable growth in emerging markets.

The 2025 results show progress on both dimensions: increasing scale and geographic reach, alongside increasingly robust measurement, risk management and reporting.

For institutional investors, the central proposition remains straightforward: development finance can provide access to diversified emerging-market private debt while directing long-term capital towards the infrastructure, businesses and economic activity required for sustainable growth.