IFC as implementing entity of the IDA20 Private Sector Window Blended Finance Facility is expected to provide a concessional subordinated loan of up to €6.1 million (“blended concessional finance co-investment”). The project requires long term financing to provide it with adequate time for construction and ramp up. However, the high sector, project and country 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. Without the de-risking provided by IDA PSW, the project would either be significantly delayed or not move forward. By supporting the project, IDA PSW would help in promoting the access to unadulterated fuel along with non-fuel related services in tier 2 cities that currently have limited access. The combined level of concessionality (i e., “subsidy") provided by the blended concessional finance co-investment is estimated to be 6% of the total project cost. The total cost of the project is €20.7 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 IDA PSW BFF loan. 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

6.54 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	6.54
Equity

* These investment figures are indicative

Development Impact includes increasing access to modern retail fuel stations, supporting economic activity, job creation, and contributing to Mali’s local economy the Project is expected to promote competitiveness in the retail fuel sector, improve the quality of fuel and non-fuel retail products, and introduce new green standards.

IFC and PSW support for Yara Oil encompasses (1) financial additionality with long-term financing, (2) knowledge and capacity building through financial management and clean energy advisory services, (3) standard-setting in fuel retail practices, and (4) promoting environmentally and socially responsible operations for sustainable growth.

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.