IFC as implementing entity of the Blended Finance Component of the ERA Program for Ukraine, including UK-FCDO and EC-UIF, and the Clean Technology Fund, is expected to provide a co-investment of around EUR 55 million, including first-loss guarantees and a concessional loan (“blended concessional finance co-investments”). High country, market and project risks create a mismatch in the risk and return profile that constrains IFC’s participation as well as other lenders in the project. Blended finance is enabling IFC and a parallel lender to overcome the participation constraints and provide the required financing for the project. As part of IFC’s commitment to transparency in the deployment of concessional blended finance resources, the blended concessional finance co-investments have been made available to other projects of a similar nature in Ukraine. The level of concessionality (i.e., “subsidy”) provided by the blended concessional finance co-investment is estimated to be 12% of total project costs. 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-investments. 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.

122.37 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee	0.0
Loan	122.37
Equity

* These investment figures are indicative

This project will increase the supply of sustainable electricity in Ukraine while reducing c. 255,000 tons of CO2 emissions annually. Additionally, it will improve the resilience of Ukraine's power sector by adding 147 MW of renewable energy capacity, thereby increasing investments in renewable energy for reconstruction and diversifying the country's energy mix. The project will also improve the competitiveness of Ukraine's power market by introducing an innovative business model that holds promise in Ukraine as renewable energy producers seek alternatives to the feed-in-tariff program, which has suffered from implementation challenges. This could demonstrate the viability of novel offtake structures, such as corporate power purchase agreements, which hold strong replication potential and could provide confidence to potential private investors and attract additional investment in renewable energy.

IFC's additionality in this Project is both financial and non-financial. Financial additionality stems from the financing structure as IFC is providing a loan with a tenor of 16 years which will be tailored to support project viability in a context of exceptionally high uncertainty, with de-risking through blended finance. Non-financial additionality includes non-commercial risk mitigation as IFC’s presence is expected to provide investors’ confidence and comfort in a challenging FCS market. IFC will also provide technical support to help the company with PPA structuring, climate and gender issues and to manage E&S risks in line with IFC Performance Standards.

Indicator	Metrics	Comments	Calendar Year 2022	Calendar Year 2023	Calendar Year 2024
Female Direct Employment (#) - Operations and Maintenance	Female Employment (#) [Actual]		Pre-dates IFC investment	Pre-dates IFC investment	Pre-dates IFC investment

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.