The Dutch pension fund ABP has increased its investment in ILX, a fund that provides sustainable loans to emerging countries, allowing countries and companies in Africa and Asia to start projects to combat climate change.

ABP was the first investor in ILX and has already invested around €570m in the fund through its contractor APG. The new investment will increase this amount to €1bn.

The investment is an impact investment, part of ABP’s plan to invest around €30bn by 2030 in investments that generate financial and social returns. It is expected to offer stable and attractive returns.

ABP invests in high-risk and low-risk investments to earn returns and protect accrued pensions. The fund also looks at the cost and sustainability of each investment.

In addition to ABP, bpfBOUW and Pensioenfonds Vervoer invest in ILX. Four Danish pension funds have also invested in the new bundle of loans.

Commenting on the increased investment, ABP chairman of the board of directors, Harmen van Wijnen, said: "This type of investment must first and foremost have an appropriate financial return and also make a measurable positive and social contribution.

“As a first-time investor in the ILX fund, we have entered into an agreement with ILX to implement our impact investing policy.

“The development finance opportunities in emerging markets through collaborations with solid institutions such as the World Bank (through the International Finance Corporation) and the Asian Development Bank are highly impactful.

“The progress made since the start has been remarkable and promising."

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