IFC as implementing entity of the IDA Private Sector Window Blended Finance Facility and the Concessional Capital Window is expected to provide a concessional subordinated loan of up to €5 million (“blended concessional finance co-investment”). Climate-related investment requires long-term financing given the high upfront cost of the solar power system and the long payback period. However, high country and project specific risks lead to a mismatch of risk and return, limiting the project’s ability to secure the required long-term financing without any risk mitigation. By supporting the project, IDA PSW would help reduce GHG emission while improving food security in an FCS market. The level of concessionality (i e., “subsidy“) provided by the blended concessional finance co investment is estimated to be approximately 2.5% of the total project cost. The total cost of the project is €33.8 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 IDA PSW loan. As is the case with all 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/blended finance.

7.03 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	7.03
Equity

* These investment figures are indicative

The project is expected to contribute to domestic food security by enabling additional production of fortified wheat flour. It will generate employment opportunities by creating new direct jobs in a context with high levels of employment informality. The project will also produce environmental co-benefits, supporting climate mitigation through renewable energy generation, which is expected to reduce the Company’s emissions and the carbon intensity of its wheat flour production. The project is expected to deliver positive market outcomes by enhancing competitiveness in the wheat flour production sector, by expanding the adoption of cost-saving business practices (solar energy generation, in-house transportation) that will reduce production and logistics costs and address key supply-side bottlenecks.

Financial Additionality: Financing Structure: The proposed financing package of €10M, with an 8-year tenor and 3-year grace period, is not readily available to agribusinesses on the local market. This includes support from blended finance. From December 2024 to December 2025, there were neither EUR syndicated loans nor EUR corporate bond issuances at a corresponding rating of B+/- in Mali. Non-financial Additionality: Knowledge, Innovation, and Capacity Building: IFC is exploring provision of advisory services to support the Company with engaging smallholder farmers and cooperatives at its farm in Selingue, with a particular focus on women, and technical and agronomical support for the nucleus farm. IFC will support M’Bouna to hire Corporate Governance and E&S advisors, and may provide technical assistance for the establishment of the Baking Academy. Standard-setting: With support from IFC, the Company will improve its E&S standards to comply with IFC Performance Standards, including implementation of an ESAP.

Indicator	Metrics	Comments
% of energy use from solar: South Africa	%

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