IFC, as implementing entity of the Canada-IFC Renewable Energy Program for Africa (AREI) will provide up to US$[25] million in the form of a senior loan (the “Blended Finance Co-investment”). The Blended Finance Co-investment will enable IFC and other senior lenders to participate in the debt financing package for the company and in turn such participation will enable the company to execute its growth plans in Nigeria that are expected to have positive development impact by supporting off-grid home energy solutions. The level of concessionality (i.e., “subsidy”) provided by the Blended Concessional Finance Co-Investment is estimated to be [9]% of the total project cost. The total cost of the Project is up to US$[80-85] million. This estimate is based on the difference between (i) a “reference return” (“the return calculated using IFC’s expected return model, which comprises three main elements: risk, cost and profit) and (ii) the “concessional return” being expected by the Blended Concessional Finance Co-Investment. As is the case with all IFC’s blended concessional finance co-investments, the 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 details and historical information on estimated subsidy levels in IFC’s blended finance portfolio can be found at: www.ifc.org/blendedfinance.

The most significant, expected project-level outcomes are: i) increased access to and affordability of energy by underserved households and the environmental effects related to the use of solar home systems; and the ii) reduction of GHG emissions resulting from the Project's contribution to the scaling renewable energy sources. The Project is expected to target predominantly low and middle-income groups and rural segments. Beyond the Project, the investment has the potential to strengthen competitiveness in the solar distributed generation markets, by introducing a product innovation and furthering financial innovation.

IFC's additionality in the Project is mainly financial, derived from arranging and participating in the first local currency, receivables back structured financing facility for the Company; and mobilization of local currency funding.

Indicator	Metrics	Comments	Calendar Year 2022	Calendar Year 2023	Calendar Year 2024
Number of Outstanding Loans, Individuals	loans		Not Available	Not Available	Not Available

This is a Category B project according to IFC's 2012 Policy on Environment and Social Sustainability. 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), including those reflected in the E&S Action Plan (ESAP) attached to this document. Key E&S risks and issues for this investment are (i) company capacity to develop and implement operational procedures for the Environmental and Social Management System (ESMS) appropriate to the project E&S risk profile and in line with IFC’s PSs, (ii) (fair, safe and healthy working conditions in line with IFC’s PSs for employees, agents and contractors; (iii) approach to its own and third-party workers’ with a focus on occupational, health and safety (OHS) for sales agents and solar panel installation technicians and gender based policies for women sales agents and women-owned MSMEs within the company’s distribution network.; (iv) supply chain policies and procedures for solar equipment and batteries (v) emergency preparedness and response plan, including life and fire safety (L&FS) at the warehouses, shops/stores and offices; (vi) management of electronic waste; (vii) traffic and security management during distribution and at the warehouses, and (viii) infrastructure and equipment design and safety during installation of solar panels.

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.