The proposed IFC loan will be funded by a cross-currency swap with IDA through the IDA PSW LCF (“blended concessional finance co-investment”). The project requires long-term financing in local currency to provide EDK with adequate time for development and roll out of their new stores and to align the Company’s cash flows with their debt obligations, both in terms of timing and currency. However, the high sector and project specific risks along with first mover cost disadvantages, lead to a mismatch of risk and return, limiting the project’s ability to secure the required long-term financing. Without the support provided by IDA PSW, the project would not move forward. By supporting the project, IDA PSW would help a local retail company improve access to quality products at affordable prices in the underserved areas and create jobs. The level of concessionality (i.e., “subsidy”) provided by the blended concessional finance co-investment is estimated to be 9.8% of the total project cost. The total cost of the project is EUR25 million. This estimate is based on the difference between (i) a “reference swap rate” and (ii) the “concessional swap rate” received by the IDA PSW LCF. As is the case with all IFC’s blended concessional finance co-investments, this project has been assessed against the Enhanced Blended Concessional Finance Principles for Development Finance Institution (“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 historical information on estimated subsidy levels in IFC’s blended finance portfolio can also be found at: www.ifc.org/blendedfinance.

28.28 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	28.28
Equity

* These investment figures are indicative

The Project is expected to increase consumers’ access to modern retail formats including in less served areas of Senegal, outside Dakar. The Project will also have beneficial effects on suppliers and various positive economy-wide effects, including job creation and value addition.

Through the proposed investment, IFC's financial additionality is delivered through the provision of long-term financing with maturity not readily available in the market, needed for Low Price expansion. IFC's non-financial additionality is delivered through the provision of technical expertise through the implementation of comprehensive Environmental & Social management systems and the provision of advisory services such as the Financial Management Advisory solution.

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.