APG invested the $750 million on behalf of ABP and bpfBouw in the new ILX bond fund, which finances projects in developing countries. The move is a further step by the pension funds towards more sustainable investments. Some of the funds invested are earmarked to combat climate change and will go towards, for example, loans for projects in sustainable energy generation, such as solar panels. Additionally, the pension funds want to contribute to other UN Sustainable Development Goals (SDGs), like zero hunger.  

The projects that will be invested in are already underway at development banks and are partly financed by the latter. These projects can be from the Netherlands’ Entrepreneurial development bank, FMO, the European Bank for Reconstruction and Development, or the World Bank, for example. APG already invests in bonds from these banks and in government bonds from developing countries, but sees the new fund as a way to use the money in a more targeted way. 

ABP, which is both owner of APG and its largest client, has come under fire in recent years over its investments in fossil fuels. In October 2021 it announced that it would stop investing in producers of fossil fuels due to climate change.  

Source: https://fd.nl/financiele-markten/1427094/pensioenfondsen-abp-en-bpfbouw-steken-750-mln-in-projecten-van-ontwikkelingsbanken-jta2cal6KIH2