IFC as implementing entity of the IDA PSW Blended Finance Facility (BFF) will support risk mitigation support to IFC in the form of an unfunded first loss guarantee (“blended concessional finance co-investment”) of US$1.2 million under the facility’s COVID-19 Response envelope. Without the support of the blended concessional finance co-investment the ongoing support of Bel Ga MM’s operations during the COVID-19 pandemic and expected impact resulting from the additional hatchery capacity expansion would not be achievable due to IFC’s exceeding of internal exposure limits with individual clients. 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 of US$7 million. 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.

5.20 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	5.20
Equity

* These investment figures are indicative

By sustaining the Company's operations, the project helps to accelerate the 4-party business model that will insulate farmers from short-term price fluctuations during uncertain times. At the market level, the project helps to create a stable market by providing commercial farmers with the necessary fixed inputs, technical support and a fixed offtake at the end of the production cycle.

IFC provides countercyclical financial additionality. Currently, term loans are not readily available in the market, particularly as the Company is suffering from (i) declining operating cashflow due to COVID-19 impact on demand, and (ii) further strain on working capital resources during the construction and startup of additional parent stock farm houses.

This project has been categorized as B according to IFC’s 2012 Policy on E&S Sustainability because a limited number of specific impacts may result that can be avoided or mitigated by adhering to generally recognized performance standards, industry practices and guidelines. Key E&S risks and issues related to this investment include: Bel Ga Myanmar’s EHS, social and food safety management system and performance; assurance of fair and safe working conditions for Bel Ga’s employees and contractors; animal welfare and biosecurity management; utilization of equipment and operational practices that maximize conservation of energy, water and process materials, including recycling and reuse initiatives; management of emissions and wastes and their impacts on ambient environment and nearby communities; impacts of transport and warehousing infrastructure and biosecurity issues on the nearby communities.

The company will undertake a comprehensive Biosecurity, Animal Welfare & Antibiotic (BAWA) audit against OIE Terrestrial Code and Manual and, based on audits findings, will further develop and implement its BAWA management system. Going forward, the client will seek certification of this management system against a credible certification (e.g. Global GAP Livestock Production) for its poultry production and hatchery operations within 12 months of disbursement.