IFC as implementing entity of the Global Agriculture and Food Security Program (GAFSP) is expected to provide risk mitigation support to IFC in the form an unfunded first loss guarantee of up to USD 1.4 million (“blended concessional finance co-investment”). Without the support of the blended concessional finance co-investment the project’s impact related to direct employment generation, local production and increased availability of animal feed premixes and vitamins that are vital for improved productivity of livestock will not be achieved due to lack of sufficient available security cover for the transaction. The level of concessionality (i.e., “subsidy”) provided by the blended concessional finance co-investment is estimated to be approximately 5.3% of the total project cost. The total cost of the project is USD 4.9 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.”

5.90 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	5.90
Equity

* These investment figures are indicative

The Project claims are stakeholders (farmers) as the primary claim via the provision of increased access to quality and affordable animal feed additives, and economy-wide effects on value added and job creation as the secondary claim. Beyond the project level, IFC expects the investment to promote market competitiveness in the livestock sector in Nigeria, by strengthening, through local production, the availability of key feed complements, such as salt licks, mineral blocks, and concentrates.

BM Group is interested in both financial and non-financial aspects of additionality that IFC brings to this Project. On financial additionality, IFC is providing long-term financing in Nigeria at tenors that are otherwise not readily available to private sector companies. IFC’s non-financial additionality centers around supporting BM Group’s operations, including through Advisory services to strengthen the corporate governance structure.

 This is a Category B project according to IFC’s 2012 Environmental and Social Sustainability Policy as the project is expected to have limited adverse E&S risks and impacts that are few in number, short-term and site-specific, and can be avoided or mitigated by adhering to recognized Good International Industry Practices (GIIPs) as described in the following sections and the attached E&S Action Plan (ESAP).

Key E&S risks associated with this proposed investment relate to EHS/HR management system, including organizational structure and internal capacity / competency for managing proposed operations in line with IFC PSs and Nigerian’s legal and regulatory requirements; implementation effectiveness of ABMN’s EHS, HR & food safety management systems; fair and safe working conditions for employees and contractors; energy efficiency; security management; and, community grievance mechanism.

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.