IFC as implementing entity of the IDA-PSW BFF and for its own account under IFC’s Concessional Capital Window for IDA21 (CCW-IDA21), is expected to provide concessional loans of up to €4.875 million and up to €1.625 million, respectively (“blended concessional finance co-investment”), subject to obtaining the necessary internal approvals. The use of a blended concessional finance co-investment will enable the launch of a new domestic flour processing plant in Mali contributing to local value creation, improving food security, creating downstream jobs, and climate mitigation via a 2.3MW solar installation. Without the risk mitigation provided by the blended concessional finance co-investment, the Project would not move forward due to the high country and project specific risks which limit the project’s ability to secure the required long-term financing and the expected development impact would not materialize. The level of concessionally (i.e “subsidy”) provided by the blended concessional finance co-investment is estimated to be approximately 4.5% of the total project cost. The total cost of the Project is €18.6 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 blended concessional finance co-investment. 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.

9.52 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	9.52
Equity

* These investment figures are indicative

(i) The Project will expand consumer access to safe, high-quality wheat products in Mali, where demand is high and growing, thereby contributing to improving local food security in a country with a high Global Hunger Index score. The Client may also implement a fortification program, which would add essential micronutrients that would help to combat widespread malnourishment. (ii) The bran produced as a by-product of wheat milling is a critical raw material input for animal feed production, which will increase as a result of the Project, benefiting the animal protein value chain. The Project is also expected to contribute to local economic activity through value addition and direct and indirect job creation. IFC expects this Project to increase the competitiveness of wheat flour production in Mali by expanding production and introducing new business practices.

IFC’s financial additionality stems from its ability, with support from the IDA PSW BFF, to provide long term financing that is otherwise unavailable to agribusiness companies in the local market. Non financial additionality will be delivered through IFC advisory support, including planned engagements on food safety and financial management to strengthen the Company’s capacity. IFC will also help the Company strengthen its environmental and social practices to meet IFC Performance Standards.

Indicator	Metrics	Comments
Renewable Energy Installed Capacity	MW

This is a Category B project according to IFC’s Policy on Environmental and Social Sustainability (2012) with limited adverse environmental and social risks and impacts, generally site-specific, largely reversible, and effectively addressed through mitigation measures. The key environmental and social risks and issues associated with this category B include: (i) the adequacy of the company’s E&S Management System (ESMS) and organizational capacity to develop and implement E&S management plans (ESMPs) and standard operating procedures (SOPs) consistent with the IFC Performance Standards (PS) for the Flour mill and the solar farm; (ii) assurance of fair treatment, safe working conditions for employees and contracted workers, (iii) Occupational Health Safety (OHS) and emergency preparedness and response, (iv) contractor management, particularly during construction phase; (v) life and fire safety (L&FS); (vi) management of health and safety risks related to grain storage (including dust explosion hazards), (vii) stakeholder engagement and the effectiveness of the community grievance mechanism.

Please refer to the related Environmental and Social Review Summary (ESRS) document for this project.