AFD_REGISTRATION_DOCUMENT_2017

CONSOLIDATED FINANCIAL STATEMENTS PREPARED IN ACCORDANCE WITH IFRS 6 Statutory auditors’ special report on regulated agreements and commitments

Lastly, AFD provides the SDCs with guarantees of the outstanding capital of the loans taken over, up to their net book value. In 2017, AFD was paid fees and interest for these loans that amounted to €239K from SODEMA, €74K from SODEGA and €20K from SOFIDEG. In 2017, up to €22,949K 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 €491K in 2017. WITH THE FONDATION POUR LES ÉTUDES ET RECHERCHES SUR LE DÉVELOPPEMENT 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 2017. AFD received no remuneration under these agreements in 2017. WITH THE SOCIÉTÉ DE PROMOTION ET DE PARTICIPATION POUR LA COOPÉRATION ÉCONOMIQUE (PROPARCO) Service Agreement On 23 December 2009, AFD signed a service provision agreement with its subsidiary PROPARCO. This agreement, which took effect on 1 March 2009, redefines the contractual relationship between AFD and its subsidiary by itemising the services rendered to PROPARCO by AFD’s various departments, at head office and throughout the network, along with the corresponding billing terms. An amendment, signed on 13 August 2012, primarily redefines: P the purpose and extent of AFD/PROPARCO services; P the invoicing and payment procedures for employees governed by AFD’s bylaws and seconded employees; P ongoing control, compliance and security services for activities; P periodic control services. The income booked by AFD under this agreement for the period from 1 January 2017 to 31 December 2017 totalled €35,293K.

Paris-La Défense, 6 April 2018

The statutory auditors

KPMG S.A. Pascal Brouard

MAZARS Nicolas De Luze

Partner

Partner

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REGISTRATION DOCUMENT 2017

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