IFC as implementing entity of the GAFSP is expected to provide up to US$5 million in the form of a concessional subordinated convertible loan ("blended concessional finance co-investment"). Without the support of the blended concessional finance co-investment the envisaged development impact of the Project as described will not be achievable, as IFC may not be able to proceed with the investment on its own due to perceived project risks and insufficient collateral. Alternative suitable financing options are not available in the current environment. Besides this project, IFC is open to engaging with other corporates on similar structures to achieve development impact on food security and livelihoods in Sri Lanka. The level of concessionality (i.e., “subsidy”) provided by the blended concessional finance co-investment is estimated to be up to 4.4% of the total project cost. The total cost of the project is up to US$22million. 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.

5.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	5.0
Equity

* These investment figures are indicative

IFC expects the Project to (i) contribute to enhancing food and nutrition security in Sri Lanka through increasing the availability of and access to poultry meat to consumers in Sri Lanka; (ii) generate stakeholder effects for farmers as suppliers through improved livelihoods, access to market, and technical assistance and (iii) generate economy-wide effects by contributing to employment creation and stimulating forward and backward linkages with related sectors. Beyond the Project outcomes, IFC anticipates that the Project will generate a market deepening effect in the natural chicken production segment. By improving operational efficiency for a leading player in the natural poultry production sector in Sri Lanka and demonstrating viability of the Project, it can catalyze other players in the sector to replicate natural chicken production.

IFC’s additionality is expected to come from both financial and non-financial sources of additionality. Financial additionality stems from IFC providing long-term financing in hard currency and grace period that is not readily available in the local market. Non-financial additionality comes from standard setting relating to E&S standards, and knowledge, innovation, and capacity building through proposed advisory services.

Indicator	Metrics	Comments	Calendar Year 2022	Calendar Year 2023	Calendar Year 2024
Number of People Fed	individuals		Not Available	Not Available	Not Available

 This is a Category B project according to IFC's Policy on Environment and Social Sustainability (2012). Based on information reviewed by IFC, the proposed project will have limited adverse E&S impacts that are few, site specific, largely reversible and readily addressed through existing mitigation measures and good international industry practices (GIIP).  Key E&S issues and risks associated with the project include the company's management and monitoring systems to assess and manage the E&S risks and impacts from its operations, including those related to out-grower operations, storm and wastewater management, and biodiversity. Gender-Based Violence (GBV), labor and working conditions, OHS, Greenhouse Gas (GHG) emissions, and reporting to affected communities are also relevant E&S issues associated with the project.                             

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.