AFD - 2018 Registration document

CONSOLIDATED FINANCIAL STATEMENTS PREPARED IN ACCORDANCE WITH IFRS ACCOUNTING PRINCIPLES ADOPTED BY THE EUROPEAN UNION Statutory auditors’ special report on regulated agreements and commitments

WITH THE SOCIETE DE CREDIT POUR LE DEVELOPPEMENT DE LA MARTINIQUE (SODEMA), SOCIETE DE CREDIT POUR LE DÉVELOPPEMENT DE LA GUADELOUPE (SODEGA) AND THE SOCIETE FINANCIERE POUR LE DEVELOPPEMENT ECONOMIQUE DE LA GUYANE (SOFIDEG) Agreements relating to the refinancing and guaranteeing of the customer loan portfolios taken over from SODERAG by the three SDCs (departmental credit companies) Under the terms of the protocol agreements signed in October and November 1998 between AFD, SODERAG and the three SDCs (SODEMA, SOFIDEG and SODEGA), the SDCs acquired the portion of SODERAG’S customer loan portfolio relating to their department, as SODERAG was in liquidation. In September and October 2000, three additional protocol agreements were signed with the three departmental credit companies, setting out the terms for managing the portfolio of loans from SODERAG. At 31 December 2018, outstanding loans in AFD’s books amounted to €9,761K for SODEMA, €13,435K for SODEGA and €856K for SOFIDEG. Two thirds of the interest and early repayment charges received by the SDCs from customer loans are paid to AFD. The loans’ principal is repaid by the SDCs to AFD to the extent that it is repaid by customers, bearing in mind that the total repayment is limited to the acquisition value of the loans. Lastly, AFD provides the SDCs with guarantees of the outstanding capital of the loans taken over, up to their net book value. In 2018, AFD was paid fees and interest for these loans that amounted to €135,000 from SODEMA, €100,000 from SODEGA and €48,000 from SOFIDEG. In 2018, up to €20,769K of the credit risk assumed by AFD was covered by a provision for risks for the SODERAG portfolio transferred to the three SDCs, producing a net reversal of €2,179K in 2018. WITH THE FONDATION POUR LES ETUDES ET RECHERCHES SUR LE DEVELOPPEMENT INTERNATIONAL (FERDI) AND THE FONDATION DE RECHERCHE POUR LE DÉVELOPPEMENT DURABLE ET LES RELATIONS INTERNATIONALES (FONDDRI) Lending agreements Under two agreements signed with FERDI and FONDDRI, respectively, AFD undertook in 2000 to grant an interest-free loan of €12,500K to each foundation, repayable in one instalment after 15 years. Loan outstanding amounted to €25M at 31 December 2018. AFD received no remuneration under these agreements in 2018. WITH THE SOCIÉTÉ DE PROMOTION ET PARTICIPATION POUR LA COOPÉRATION ÉCONOMIQUE (PROPARCO) Management agreement for AFD’s equity stake in the African Agriculture Fund On 18 December 2014, the AFD Board of Directors approved the signing of an agreement with its subsidiary PROPARCO. Under this agreement AFD commissioned PROPARCO to manage its equity stake in the main African Agricultural Fund (AAF) and indirectly in the African Agricultural Fund SME (AAF SME) sub-fund. To pool the management of this investment fund between its various subsidiaries, AFD assigned to PROPARCO S.A. the following key tasks: P managing and monitoring AFD’s equity stake in the AAF (and indirectly in the AAF SME), specifically to represent it on all the governing bodies of the AAF and AAF SME on which AFD was required to sit; P managing and processing, on behalf of AFD, all capital disbursements or distributions requested or carried out by the AAF management fund; P sending AFD each semester the list of documents provided by the AAF and AAF SME fund managers under their reporting obligations to investors; P holding the permanent credit files, preparing the «internal quality» reports and rating the «Risk assessment files» on behalf of AFD; P more generally, taking the right decisions to ensure the efficient management of AFD’s equity stake in the AAF and AAF SME (excluding disposal of AFD’s equity stake in the AAF which can only be done at AFD’s request). In return, PROPARCO’s commission is as follows: P between the effective date of this agreement and the end of the AAF investment period: 0.60% per annum of the amount subscribed by AFD; P between the end of the AAF investment period and the date on which AAF and AAF SME are liquidated: 0.60% per annum of the cost price of the portfolio investments payable to AFD. In the 2018 financial year, AFD paid PROPARCO €133,000 in commission. P acting as the designated point of contact for the AAF and AAF SME fund managers;

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REGISTRATION DOCUMENT 2018