IFC as implementing entity of the IDA PSW BFF is expected to provide up to $4.25 million in the form of a subordinated loan (“blended concessional finance co-investment”). Without the support of blended finance, IFC would not move forward as planned, considering the uncertainties around cash flow projections and collateral enforceability. By tackling the participation constraints, the BF investment will enable IFC’s participation in the Project and hence the development impact on increasing access to affordable and quality pharmaceutical products in DRC, and supporting greater market resilience as spillover effects accrue to the pharmaceutical supply chain in these markets. IFC is open to engaging with other private sector players on similar structures to achieve similar impact in the region. The level of concessionality (i.e., “subsidy”) provided by the blended concessional finance co-investment is estimated to be 4% of the total project cost. The total cost of the project is $21 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. 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, IFC’s blended finance approach and governance, and historical information on estimated subsidy levels in IFC’s blended finance portfolio can also be found at: www.ifc.org/blendedfinance.”

The most significant expected project-level outcome is increased access to affordable and quality pharmaceutical products in DRC by extracting high-quality quinine from the bark of cinchona. Beyond the project, IFC anticipates financing the principal quinine-based pharmaceutical producer in DRC, supporting greater market resilience as spillover effects accrue to the pharmaceutical supply chain in these markets.

IFC’s involvement with the support of IDA PSW LCF is expected to contribute to both financial and non-financial. Financial additionality is provided through a long-term debt facility not readily available in the local market. Non-financial additionality comprises knowledge, innovation, capacity building, and standard-setting provided by IFC's engagement with the Company to provide further guidance to strengthen the Company’s capacity to manage E&S risks in accordance with IFC’s performance standard.

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.