AFD - 2018 Registration document

AFD’S ANNUAL FINANCIALS STATEMENTS Accounting principles and assessment methods

In accordance with riders No. 1 of 19 March 2015 and No. 2 of 24 May 2016, on the initiative of the French State and per the third stage of additional financing of €280M, there was a drawdown of €160M on this last tranche of RCS (Resources with special conditions) in September 2017. The balance of €120M was drawn down in September 2018, reaching the total amount of €840M for the period 2015-2018. 7.2.13 Financing commitments Financing commitments given record the amounts to be disbursed under lending agreements with customers or credit institutions and under investment fund agreements. Financing commitments given to credit institutions include the undisbursed balance, on the State’s behalf, under agreements signed with the IMF for financing the PRGF. Financing commitments given to investment funds include remaining commitments for AFD’s subscription to Fisea’s new share issue, namely €40M at 31 December 2018. 7.2.14 Guarantee commitments Commitments given for guarantees to credit institutions include, in particular: P guarantees granted by AFD for the Ariz I, Ariz II and Ariz Med procedure (Support for the risk of financing private investment in AFD’s PSZ, in Sub-Saharan Africa and in Mediterranean countries). These guarantees are intended to encourage the creation and development of local businesses; Commitments given for guarantees to clients include, in particular: P the guarantee of the debt of its subsidiary in liquidation, Soderag, bearing in mind that a very large part of this debt was repaid early in 1998 and 1999 after Soderag sold its portfolio to Sodega, Sodema and Sofideg. The portfolio was then taken over by BRED; P the guarantee granted to BRED accounts for 50% of gross outstandings on the loan portfolio sold by Socredom in 1998 in preparation for its dissolution, which took place on 1 January 1999; P repayment guarantees for the three bonds issued by IFFIM as part of managing the French contribution to the Solidarity Fund for Development (FSD) on behalf of the French State;

Commitments received from credit institutions are related to loan transactions conducted by AFD. Other commitments received included the French State’s guarantee of loans to foreign countries. Guarantee commitments for securities include share buyback options offered to Proparco’s minority shareholders as part of the capital increases undertaken in May 2014 and June 2014. These buyback options may be exercised for a period of five years following a lock-in period of five years. 7.2.15 Disclosure on non-cooperating States and territories Article L.511-45 of the French Monetary and Financial Code (as amended by Article 3 of Order 2014-158 of 20 February 2014) requires credit institutions to publish an appendix to their annual financial statements presenting information about their offices in countries or territories that have not signed an administrative assistance agreement with France for the purpose of combating fraud and tax evasion. Act 2013-672 of 26 July 2013 on the separation and regulation of banking activities broadens the list of required disclosures from banks regarding their offices in non-cooperative countries or territories. At 31 December 2018, AFD did not have any offices in non- cooperative countries or territories. 7.2.16 Other information related to consolidation AFD’s financial statements are fully reflected in AFD Group’s consolidated financial statements using the full consolidation method. 7.2.17 Post-closing events A minority shareholder of Proparco confirmed its intention to exercise the option to buy back its shares by AFD. The concrete implementation of the buyback is subject to obtaining a ministerial order. The effective completion of the transaction is planned for 2019 and will thus increase AFD’s stake in Proparco to 74%. No other significant events took place after 31 December 2018.

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P sub-participation guarantees granted to Proparco.

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REGISTRATION DOCUMENT 2018