Timor-Leste - Proposed IFC Investment in Manatuto Renewables Power S.A. for the Timor Solar Project - Absence-of-Objection Basis April 2, 2026

Jul 19, 2026

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Approval on an Absence-of-Objection Basis dated Thursday, April 2, 2026 covers IFC investment and MIGA guarantees supporting Timor-Leste’s Timor Solar Project via Manatuto Renewables Power S.A. It includes specified IFC loan amounts, blended finance facility funding, interest rate swaps for client risk management, and political risk insurance, alongside guarantees addressing equity and quasi-equity investments for up to 20 years, with defined risk categories and utilization of IDA Private Sector Window guarantee facilities.

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Approval on an Absence-of-Objection Basis

Date and parties

Approved IFC investment components

Approved MIGA guarantee scope

Public Disclosure Authorized Public Disclosure Authorized The following item has been approved on an Absence-of-Objection Basis on Thursday, April 2, 2026 Timor-Leste-IFC Investment in Manatuto Renewables Power S.A. for the Timor Solar Project with Support from the IDA IFC-MIGA PSW BFF and RMF and MIGA Guarantees to EDF Power Solutions S.A. (France), I-Environment Investments Pacific Pty Ltd (Australia), and/or any of their group companies and/or directly and indirectly owned subsidiaries for their investments in Manatuto Renewables Power S.A. with Support from the IDA IFC-MIGA PSW MGF The Board of Directors of IFC and MIGA on April 2, 2026: (a) Approved an IFC investment consisting of: (i) up to US$40.3 million loans, including an IFCA Loan of up to US$19 million, and a senior concessional loan of up to US$21.3 million, of which US$18.1 million will be provided by IFC in its capacity as the Implementing Entity of the IDA Private Sector Window (PSW) Blended Finance Facility, and up to US$3.2 million will be funded by IFC’s Concessional Capital Window; (ii) a client risk management in the form of interest rate swaps representing an Average Expected Positive Exposure of up to US$1 million, in each case to Manatuto Renewables Power S.A.; and (iii) a political risk insurance (PRI) of up to US$20.66 million for the IFC A Loan to be issued by MIGA in its capacity as the Administrator of the IDA Private Sector Window Risk Mitigation Facility (PSW RMF) with IFC acting as the Implementing Entity ofthe IDAPSW RMF; and (b) Concurred with the issuance of Guarantees to cover equity and/or shareholder loans investments including future equity earnings and shareholder loan interest and approved to cover quasi-equity investments, including future earnings and interests to EDF Power Solutions S.A. (France), I-Environment Investments Pacific Pty Ltd (Australia), and/or any of their group companies and/or directly and indirectly owned subsidiaries for their investment in Manatuto Renewables Power S.A. of up to US$31.68 million against the risks of Transfer Restriction, Expropriation, War and Civil Disturbance, and Breach of Contract (under both the Power Purchase Agreement and the State Guarantee Agreement) for a period of up to 20 years, and MIGA proposes to utilize up to US$10.16 million from IDA Private Sector Window MIGA Guarantee Facility to support MIGA guarantees in the form of first loss layer and US$10 million of facultative reinsurance, resulting in MIGA’s gross and net exposure will be up to US$30.10 million and US$9.94 million respectively; as set out in the President’s Memorandum and the Report to the Board entitled “Timor-Leste-Proposed IFC Investment in Manatuto Renewables Power S.A. for the Timor Solar Project with Support from the IDA IFC-MIGAPSW BFF and RMF and Proposed MIGA Guarantees to EDF Power Solutions S.A. (France), I-Environment Investments Pacific Pty Ltd (Australia), and/or any of their group companies and/or directly and indirectly owned subsidiaries for their investments in Manatuto Renewables Power S.A. with Support from the IDA IFCMIGAPSW MGF”(IFC/R2026-0075[MIGA/R2026-0033];/1, dated March 23, 2026 and April 1, 2026) . Alexey Nickolaevich Morozov and Lailee Jane Moghtader wished to be recorded as abstaining.

FAQs

What is the approval basis and date stated in the document?

The approval is on an Absence-of-Objection Basis and is dated Thursday, April 2, 2026.

What IFC financing components are approved for Manatuto Renewables Power S.A.?

The approval includes up to US$40.3 million in loans (including an IFCA Loan and a senior concessional loan), interest rate swaps for client risk management, and political risk insurance up to US$20.66 million for the IFC A Loan to be issued by MIGA.

What risks and time period do the MIGA guarantees cover for the investment?

The guarantees cover risks including transfer restriction, expropriation, war and civil disturbance, and breach of contract under the Power Purchase Agreement and the State Guarantee Agreement, for a period of up to 20 years.

Jul 19, 2026

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