The Project is estimated to have a total cost of approximately US$74 million. The proposed IFC investment includes up to US$24 million A Loan for IFC’s own account. IFC’s own account financing represents 19% of the total investment cost including the existing SSP line.

IFC as implementing entity of the IDA PSW BFF is expected to provide US$ 15million in the form of a concessional loan (“blended concessional finance co-investment”). Without the support of the blended concessional finance co-investment, the Company will not be able to carry out this Project as there will be limited appetite of lenders to provide financing in face of ramp-up and first-mover risks, and its impact will not materialize. The Project will allow an increase of local value addition and help build an ecosystem for PET recycling in Nigeria, creating a more climate-smart and sustainable process to respond to the growing demand for PET. The Project is also expected to have a demonstration effect that leads to replicability. The level of concessionality (i.e. “subsidy”) provided by the blended concessional finance co-investment is estimated to be 3.5% of the total project cost. This estimate is based on the difference between (i) a “reference price” (either a market price if available; the price calculated using IFC’s pricing model, which comprises three main elements: risk, cost and profit; or a negotiated price) and (ii) the “concessional price” being charged by the blended concessional finance co-investment. Further details and historical information on estimated subsidy levels in IFC’s blended finance portfolio can be found at: www.ifc.org/blendedfinance. As is the case with all of IFC’s blended concessional finance co-investments, this project has been assessed against the Enhanced Blended Concessional Finance Principles for DFI Private Sector Operations adopted by IFC and more than 20 other DFIs in 2017. Further information on these Enhanced Principles and IFC’s blended finance approach and governance can also be found at: www.ifc.org/blendedfinance.”

24.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	24.0
Equity

* These investment figures are indicative

The most significant expected Project-level outcomes are: (i) economywide effects via local production and the development of the recycled plastics supply chain in Nigeria, and (ii) environmental effects through introducing recycled plastics into its business model. Beyond the Project, IFC anticipates that its engagement with the Company will significantly deepen the recycled PET business in Nigeria, thereby increasing product and process complexity in the manufacturing sector in Nigeria with opportunities to further integrate into other value chains.

Financial Additionality: Financing Structure: To support the Project, IFC is proposing an 8-year loan, including a 3-year grace period to allow sufficient time for ramp up after a significant expansion. Non-Financial Additionality: Standard-Setting: Through the Project, the Company will benefit from IFC's expertise on EH&S best practices as well as introduce international best practice standards to the client as it implements its plastics recycling program in Nigeria. Knowledge Innovation and Capacity Building: IFC will also provide Engee with Advisory Services support to implement a plastics waste recycling programme specifically for bottle-grade PET supply chain development. The Advisory Services is planned under the MAS Global Climate Platform, a multi-client project with close coordination with the Company.

Please refer to the related Environmental and Social Review Summary (ESRS) document for this project.

Please refer to the Environmental and Social Action Plan (ESAP) tab in the related Environmental and Social Review Summary (ESRS) document for this project.