By Toby McIntosh
The European Investment Bank has disclosed more information about an unusual 2019 licensing agreement with ILX, a Dutch investment company — the only known instance in which a private company gained access to information from the Global Emerging Markets (GEMs) Risk Database.
GEMs contains decades of detailed data on the risks of investment in developing countries, collected by two dozen multilateral development banks and development finance institutions. They use the data in their own decision-making and for published reports.
In recent years, pressure grew, from both the private and public sectors, for more disclosure of the GEMs data in order to encourage more private sector investment in developing countries. The EIB has increased its periodic reporting of aggregated data, although still not to the satisfaction of some critics.
The grant of access to ILX in November of 2019 was unique and is no longer in effect. When it began, the Bank tweeted enthusiastically about “a milestone” that would “mobilise private institutional capital” for international development.
ILX received aggregated information on defaults and recovery rates, which is described in Schedule 2 of the agreement and was disclosed in the EIB’s original response.
But the EIB was sensitive about disclosing sections of the agreement about what ILX could do with the material, citing the commercial confidentiality provision in the EIB’s Transparency Policy as a justification to deny full access. (See EYE article.)
Eye on Global Transparency appealed through the EIB Complaints Mechanism, which in a decision issued on Dec. 4, 2024, questioned the EIB’s justifications for withholding the information. The Complaints Mechanism recommended that the EIB reconsider the redactions. (See EYE article.)
Subsequently, on Feb. 25, 2025, the EIB followed the guidance of the Complaints Mechanism and revealed what was previously hidden under black markings. The new information describes what ILX could do with the GEMs data to which it had access. The EIB continues to keep confidential what license fee was paid by ILX.
Behind the Black Markings
There are two new disclosures.
Below the newly disclosed information is shown in bold.
The first is in paragraph (2.1 on pages 6 and 7) about on the allowable use of the data.
Subject to the terms and conditions of this Agreement, Licensor grants to Licensee a non-exclusive, nontransferable, revocable licence to use the Licensed Statistics solely for the purposes of conducting a quantitative analysis of the overall historical risk/return performance of development finance loans originated and syndicated by development finance institutions to develop outputs for Licensee’s proposed investment strategy, including (i) developing performance indicators for such syndicated loans (Developed Performance Indicators) and (ii) preparing a table or graph or other presentation of such Developed Performance Indicators for disclosure to investors solely in connection with the issuance, distribution, marketing and promotion of the Approved Product in the Territory.
The EIB originally declined to disclose the description of the “Approved Product.” The formerly blacked out paragraph (p. 23) says:
APPROVED PRODUCT
The sustainable development goals targeted emerging market focused private credit fund or managed account (“ILX Fund”) established by Licensee for purposes of investing in a diversified portfolio of loan participations originated and structured by bilateral and multilateral Development Finance Institutions.
The disclosed details about ILX’s use of the GEMs data do not appear startling. If any readers see something noteworthy in the new information, EYE would be interested in their comments.
For full text see: disclosed ILX contract Feb, 2025.
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EIB Appeals a Take Long Time
EYE first requested a copy of the contract with ILX on April 13, 2023, so the entire process of obtaining the information has taken about 22 months.
The redacted contract was provided on June 7, 2023. EYE’s appeal, sent to the Complaints Mechanism on July 23, 2023, argued that the asserted harm to commercial interests from disclosure had not been sufficiently proven and that the EIB had not considered the public interest in disclosure.
The Complaints Mechanism is “is a tool enabling the resolution of disputes if any member of the public feels that the European Investment Bank (EIB) might have done something wrong, i.e. if it has committed an act of maladministration.”
In June of 2024, the draft Complaint Mechanism’s “conclusions report” was shared with the Bank staff, apparently beginning a period of internal consultations. That version is not provided to the requester.
On Dec. 4, 2024, the Complaints Mechanism issued its conclusions report. The Complaints Mechanism wrote that it “is not convinced – based on specific reasons put forward by the EIB during the course of this inquiry – of such foreseeable risk in the case of information pertaining to the use of licensed statistics and the approved product ….” It continued, “From the EIB-CM’s perspective, the EIB has not met the burden of proof, i.e., establishing a foreseeable risk, in this respect.”
The EIB staff then took about 11 weeks to act based on the Complaints Mechanism’s decision, sending EYE the less-redacted contract on Feb. 25, 2025.
So, total elapsed time, almost two years.
Another Appeal Pending
Still pending with the Complaints Mechanism is an EYE request of Dec. 18, 2023, for the minutes of a 2023 closed meeting of the GEMs General Assembly.
The EIB on Jan. 29, 2024, denied EYE’s request for the minutes. EYE appealed on April 29, 2024.
The Complaints Mechanism in December of 2024 said “we will do our best to provide you with our formal reply in the first months of 2025.
Past EYE Stories on GEMs
Development Banks Considering Transparency for GEMs Database (March 20, 2023)
GEMs Steering Committee Has ‘Proactive Agenda’ to Disclose Lending Risk Data (April 11, 2023)
Past EIB Deal Offers Insights into Value of Nonpublic Database on Lending Risks (June 23, 2023)
Disclosure of GEMs Database Still Likely, But When, What, and by Whom Unclear (Oct., 6, 2023)
Transparency Future for GEMs Database Remains Unclear; Meeting Upcoming, (Oct. 20, 2023)
GEMs Overseers Decide Against Moving Database; Still Promise Transparency (Jan. 18, 2024)
EIB Denies Access to Minutes of GEMS Consortium as Private Debate Continues (Jan. 29, 2024)
New GEMs Data Criticized for Lacking Granularity; But One Generality Praised (March 26, 2024)
GEMs Consortium Issues More Granular Data; Critics Seek More Transparency (Oct. 15, 2024)
Private Sector Observers Seek More Information From GEMs Database (Oct. 24, 2024)
EIB Complaints Body Supports Disclosures on GEMs Licensing Deal (Dec. 18, 2024)
