IFC as the implementing entity of Canda GROW is expected to provide a senior unsecured loan of up to US$4.5 million (“blended concessional finance co-investment”). High risks related to expansion to new and unserved region, implementation risks related with construction and building of the industrial bakery and low collateral cover lead to a mismatch of risk and return, limiting the project’s ability to secure the required financing without any risk mitigation. By supporting the project, GROW would help the company in expanding their operations which would lead to an additional 500 jobs (primarily for women). The level of concessionality (i e., “subsidy“) provided by the blended concessional finance co investment is estimated to be approximately 1% of the total project cost. The total cost of the project is US$36.2 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 GROW loan. 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.

IFC expects the Project to contribute to increased formal employment and value addition in the retail sector and along the supply chain, as well as to emission reductions through investments in high-efficiency bakery equipment in production facility and energy-efficient refrigeration units across retail stores. Beyond the Project, IFC investment is expected to enhance market competitiveness by supporting the growth of specialty retail chains with vertically integrated value chains and by fostering capacity-building initiatives in the retail market in Azerbaijan.

IFC’s involvement is expected to bring both financial and non-financial additionality. Financial additionality consists of providing a long-term financing structure that is not readily available in the market to support AZZA’s growth and meet its funding needs. Non-financial additionality consists of capacity-building and standard setting by supporting AZZA’s E&S, corporate governance, and gender initiatives.

Indicator	Metrics	Comments	Calendar Year 2022	Calendar Year 2023	Calendar Year 2024
Direct Employment (#) Operations And Maintenance	individuals	.	Not Available	Not Available	Not Available
Energy Savings (kWh)	kWh	.	Not Available	Not Available	Not Available
GHG Emissions Reduction/Avoidance per year	ton CO2e per year	.	Not Available	Not Available	Not Available
Gross Value Added	USDMill	.	Not Available	Not Available	Not Available
Board Composition - Total (#)	number	.	Not Available	Not Available	Not Available
Board Composition - Women (#)	number	.	Not Available	Not Available	Not Available
Direct Employment (#) Operations And Maintenance	individuals	.	Not Available	Not Available	Not Available
Domestic Purchases ($M)	$M	.	Not Available	Not Available	Not Available
Number of Senior Management Positions	individuals	.	Not Available	Not Available	Not Available
Number of Women In Senior Management	individuals	.	Not Available	Not Available	Not Available
Payment To Government ($M)	USDMill	.	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.