AFD - 2018 Registration document

PRESENTATION OF AFD

AFD operations

P Guarantees Guarantee activity in foreign countries entails, on the one hand, commitments made directly by AFD to cover such operations as borrowings, issue subscriptions or cash facilities and, on the other hand, guarantee commitments through Ariz, its guarantee facility. This facility guarantees private-sector outstandings through local banks that request it. Backed by capital of €295M, Ariz is available to any AFD operating region provided it meets the geographical objectives set in its contractual targets and resources. Ariz offers two standard individual guarantee and portfolio guarantee products and additional innovative products such as a capital guarantee. Global Budget Support (GBS) on the basis of the Treasury’s resources (Programme 110) granted in the form of subsidies, primarily in the least developed countries (LDCs). 1.3.2.2 In the French Overseas Departments and Collectivities AFD’s activities in the French Overseas Departments and Collectivities were confirmed by the Inter-ministerial Committee for the Overseas Departments and Collectivities on 6 November 2009 and relate primarily to the following areas: P Financing public-sector investment in a spirit of partnership and especially support given to local authorities for defining and implementing their development strategies. This activity is carried out through subsidised loans to local authorities, public undertakings and semi-public companies for operations concerning priority sectors for employment, economic development, solidarity and the environment (resources from Programme 123) or in the form of non-subsidised loans. Moreover, AFD may grant short-term loans to local authorities in the form of EU subsidy prefinancing. P Financing of the private sector through loans via direct lending and non-subsidised banking sector refinancing transactions. P AFD also supports the development of microcredit institutions in the French Overseas Departments and Collectivities by contributing to their refinancing. P AFD conducts significant activity guaranteeing medium and long-term bank loans that support innovation, creation and growth in French Pacific Collectivities through Sogefom, of which it is the majority shareholder, and in Mayotte and Saint-Pierre-et-Miquelon through two guarantee funds in its own name. P Loans P Guarantees P Equity investments in foreign countries. Mandate-specific operations

P On behalf of third parties AFD also manages the guarantee funds for housing in French Overseas Departments (on behalf of Bpifrance Financement) as well as agriculture and fishing guarantee funds (on behalf of the French State) created in 2010. P Management or representation mandates in the French Overseas Departments and Collectivities P AFD is running off Crédit Foncier de France’s operations in French Overseas Departments and Collectivities and represents Caisse des Dépôts et Consignations for certain activities in the French Pacific Collectivities and Saint- Pierre-et-Miquelon (in the investment business). Since 1 January 2014, AFD has been a service provider for Bpifrance Financement for some of its activities in the French Overseas Departments, in New Caledonia and in French Polynesia. P AFD also promotes housing development in the French Overseas Departments and Collectivities through stakes in seven real estate companies held on its own behalf or on behalf of the State. P Lastly, it helps the economies of French Overseas Departments and Collectivities develop within their respective regions. 1.3.3 Other AFD activities 1.3.3.1 Intellectual output AFD ensures that the projects it finances are constantly improved to anticipate the development issues of the future. Through its research and development, AFD helps to construct the future sustainable development models and orientations. AFD relies on intellectual output through modelling, studies and assessments, the management of its network of experts and the publication of its research work to increase the added value of its operations. Through its experimentation processes, it also promotes research into new practices. All these activities are part and parcel of AFD’s strategic and operational orientations. They are carried out in partnership with French and international research centres, with a focus on the use and promotion of expertise of Southern countries. 1.3.3.2 Promoting knowledge of sustainable development Based in Marseille, the purpose of the Development Campus (formerly CEFEB) is to implement actions for the reinforcement of capacities, training cycles, seminars and to moderate communities of practice for the benefit of the categories of players who contribute to the development projects run by AFD: the Group’s partners in the countries in which it is involved, the development players (in France or abroad) and, to a lesser extent, the AFD staff at the head office and in the network. Its purpose is to transfer and share knowledge and expertise applicable to the various development professions at the leading edge of research, as well as operational techniques and practices AFD has tested.

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REGISTRATION DOCUMENT 2018