IFC’s FOF and IFC as an accredited entity of GCF is expected to provide cumulatively up to $70 million in the form of combined concessional instruments (“blended finance co-investment”). The blended finance co-investment will enable IFC to invest in the Company and in turn (i) help the Company raise sufficient funds to achieve a successful financial close; and (ii) support the project’s bankability by senior debt holders to a first-of-its-kind project in Paraguay and the LAC region, and one of the first commercial-scale green fertilizer initiatives globally. As a green fertilizer initiative with zero emissions, the Project offers a strong development impact and has strong replication potential across the LAC region.  The combined level of concessionality (i.e. “subsidy”) provided by the blended finance co-investment is estimated to be 5.1% of the total project cost. The total cost of the project is approximately $620 million. This estimate is based on the difference between (i) a “reference return” (either a market return if available; the return calculated using IFC’s return model, which comprises three main elements: risk, cost and profit; or a negotiated return) and (ii) the “concessional return” expected by the blended 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.

50.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	25.0
Equity	25.0

* These investment figures are indicative

The most significant expected Project-level outcomes are (i) stakeholder effects such as the development of a domestic green fertilizer industry, which is expected to reduce farmers’ reliance on grey alternatives in Paraguay and the wider region, thereby enhancing the sustainability and security of the food supply chain; and (ii) economy wide effects, which are expected to materialize through direct and indirect job creation. On the market front, the Project is expected to generate strong demonstration effects by illustrating the commercial viability of green fertilizers, thereby catalyzing broader market adoption of sustainable production practices.

IFC will provide both financial and non-financial aspects. On the financial side, IFC's involvement will include concessional financing designed to address barriers associated with the innovative nature of the Project, such as elevated capital expenditures for equipment and uncertainties surrounding commercial sustainability. From a non-financial perspective, IFC will play a pivotal role in mitigating non-commercial risks within an emerging sector that lacks a robust track record of financing. By leveraging its institutional expertise, IFC will support the Client in evaluating the feasibility and creditworthiness of the transaction while facilitating the development of an adequate financial structure. Additionally, the Project will benefit from IFC's technical and multidisciplinary expertise in the green hydrogen and fertilizer industries, offering critical insights into technology selection, project design, supply chain optimization, and power market dynamics.

Indicator	Metrics	Comments	Calendar Year 2022	Calendar Year 2023	Calendar Year 2024
Direct Employment (#) Operations And Maintenance	individuals		Not Available	Not Available	Not Available

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.