IFC as implementing entity of the Canada-IFC Renewable Energy Program for Africa (Canada Program) is expected to provide up to US$10 million in the form of a concessionally-priced subordinated loan (“blended concessional finance co-investment”). In addition, the proposed IFC LCY C Loan will be provided through cross-currency swaps with IDA through the IDA19 PSW LCF. Through this solution, IFC will be able to provide its long-term funding in local currency at a rate the Project can sustain. The support of both blended concessional finance facilities support the scale up of a solar C&I business model which would otherwise not be achievable due to its limited track record in Nigeria and the high perception of risk from commercial lenders, resulting in a limited availability of long-term financing for such projects in Nigeria. The de-risking provided by the subordinated loans is needed for the Company to be able to attract senior debt to complete the financing package for Phases 2 and 3 and be able to scale up the business. To support the scaling up of solar solutions for C&I, IFC is engaging with other relevant market participants and expects to work with potential clients across several markets, including in some cases with the support of blended concessional finance. The level of concessionality (i.e., “subsidy”) provided by both blended concessional finance facilities is estimated to be up to 11% of the total Project cost of US$40 million. This estimate is based (A) for the Canada Program subordinated loan: 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; and (B) for IDA PSW LCF: on the difference between (i) a “reference rate” and (ii) the “concessional swap rate” being received by the IDA PSW LCF. 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

10.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	10.0
Equity

* These investment figures are indicative

- The Project is expected to increase reliability and affordability of electricity for C&I customers facing unstable supply. To meet current demand, Nigerian C&I customers rely on costly self-generation (mainly diesel units and smaller gasoline-powered generators). The Project provides power system management services and alternative energy sources provided cost efficiently to C&I customers in Nigeria. It has a target to install about 30 MWp of generation capacity by 2022. By expanding alternative reliable power solutions provided cost effectively to C&I customers, the project also supports growth and job creation in the Nigerian economy. - The proposed investment will result in GHG emission savings in electricity generation, from the switch to solar PV from more carbon intensive fuels used in distributed power generation. Emissions savings are estimated at 32,700 tons of CO2 per annum. - At a market level, the Project contributes to the decarbonization of the power sector in Nigeria by supporting the achievement of scale in deploying solar PV to C&I consumers. The project supports the expansion of a pioneer in the C&I solar distributed generation industry that helps to establish a track record for solar as an alternative to carbon-intensive energy sources. It also provides market signals that help to unlock some bottlenecks faced by solar PV distributed generation, including perceptions on reliability and cost of the solution.

IFC will provide a long-term local currency-denominated financing package at terms not readily available in the local market for the nascent solar PV C&I market. By providing a subordinated loan, IFC will help to meet the company's current funding needs, de-risk future senior debt and facilitate access to competitive longer-term senior debt. IFC's participation will also contribute to strengthening the Company's knowledge which supports implementation of its growth strategy as well as improve its operational efficiency. Further, IFC's participation will support the Company in continued application of international best practice standards on environmental and social impact mitigation measures. IFC's environmental and social due diligence indicates that the investment will have impacts which must be managed in a manner consistent with the performance standards covering E&S impact assessment & management systems, labor and working conditions, pollution prevention, and community health and safety.

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.