AFD - 2018 Registration document

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PRESENTATION OF AFD

AFD operations

1.3.4 AFD mandate-specific activities AFD’s bylaws provide for cases in which AFD acts on behalf of third parties. In accordance with Article R.515-12 of the CMF, AFD manages the specific operations financed by the French State’s budget on the State’s behalf and at its risk. The terms of these operations are set out in agreements with the appropriate ministries. These are either (i) framework agreements governing terms for AFD’s implementation of a project category, or (ii) individual temporary agreements setting terms for the implementation of a specific project. For example, the following agreements were signed: P the framework agreements between AFD and the Ministry of Foreign Affairs dated 1 December 2000 and 9 November 2001 regarding the management of assigned funds delegated by the MAE to AFD; P the agreement of 23 December 2003 related to the implementation of bilateral aid in Heavily-Indebted Poor Countries (HIPC). Refinancing through donations, particularly in the form of debt reduction-development contracts (C2D) as part of the debt relief program for HIPCs and the conversion of monetary debts; P the agreement of 14 May 2012 on the management of the French Global Environment Facility and the bilateral share in the Montreal Protocol Multilateral Fund; P the agreement of 6 December 2016 on the implementation of the Trade Capacity Building Program (TCBP); P the agreement of 15 December 2016 related to the management by AFD of the Solidarity Fund for Development (FSD) financed by a tax on plane tickets and the tax on financial transactions. As a priority, FSD inflows are used to pay for multi-lateral aid expenses for development related to global public goods in the areas of health, climate and environment and in particular to fund the International Finance Facility for Immunisation (IFFIm); P the agreement of 24 November 2017 related to the management by AFD of the loan granted to the African Development Fund (ADF) for the French representation. Furthermore, pursuant to Article 10 of Act 2014-773 of 7 July 2014 on Guidance and planning related to development and

international solidarity policy, AFD is authorised to carry out activities on behalf of third parties such as the European Union, international institutions and organisations, foreign governments, any public authority, financial institutions and other development banks or public or private institutions. To this end, it has been entrusted with managing loans delegated by the European Commission or other backers (the UK’s DFID, the Monegasque Cooperation, etc.). In accordance with international accounting regulations, these activities are excluded from the consolidated balance sheet. AFD’s compensation for this type of activity is decided on a case-by-case basis as set out by the agreement and is intended to cover AFD’s costs. 1.3.5 AFD’s operating scope (see Appendix I) The geographical areas in which AFD is authorised to operate are listed in Appendix 1, with the understanding that its operating mandate (forms of intervention, sectors, etc.) differs according to the country. 1.3.6 Information about any restrictions on the use of capital that have materially affected, or could materially affect, directly or indirectly, the issuer’s operations. The restrictions on the use of capital that could materially affect the issuer’s operations are limited to: P equity investments made by AFD: these are transactions subject to State approval by an interministerial decree under the conditions set by decree N° 53-707 of 9 August 1953 on the State’s control of national companies, P lending granted by AFD outside of its geographic scope of operations defined by article R. 515-9 of the French Monetary and Financial Code: these transactions require State authorisation under the conditions set by the aforesaid article R. 515-9 of the French Monetary and Financial Code.

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www.afd.fr

REGISTRATION DOCUMENT 2018