AFD_REGISTRATION_DOCUMENT_2017

PRESENTATION OF AFD Activities of agence française debdeveloppement group in 2017

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AFD Group’s overall activity stood at more than €10.3bn in commitment approvals in 2017, representing an increase of around 10% compared with that achieved in 2016, confirming the continuation of the growth in activities embarked upon during the last two years, in line with the target set by the French President of reaching €12.7bn in 2020. The Group’s activity was mainly driven by the growth of AFD approvals in foreign countries, which was up 14% at €7.4bn, excluding AFD’s equity stakes in Proparco, while AFD approvals in French Overseas Departments and Collectivities decreased slightly (-3% to €1.5bn). Proparco’s activity also grew 4% to €1.4bn. 1.5.3.1 AFD, foreign countries Lending and guarantee activities were €6.1bn, up €0.5bn on 2016. There were two main factors behind this increase: the increase in approvals in the Sub-Saharan, Mediterranean and Middle Eastern regions, and a higher number of non-sovereign loans. The number of loans thus exceeded the business plan targets, particularly in Sub-Saharan Africa. Non-sovereign loads stood at €1.92bn, with a business plan target of €1.73bn, which is a significant increase on previous years, thanks to the identification and appraisal work which commenced in 2015band continued in 2016 (+28% in 2017bcompared to completions in 2016). For the other activities, 2017bhighlights included: P a €107M increase in donations granted, or 51% more project subsidies than in 2016band €30M more GBS, due to AFD being allocated a portion of the Financial Transaction Tax (€245M, excluding AFD’s remuneration estimated at €18M and IMF subsidies paid on this resource totalling €7M); P a significant increase in the volume of subsidies allocated, particularly by the European Union, which reached a total of €573M, up 23% on the 2016bfigure of €466M;

P a number of C2D approvals lower than anticipated in the initial business plan (€440M approved against an initial forecast of €520M); P the sum of €100M contributed to the AFD/CDC basket fund to finance infrastructure projects. 1.5.3.2 AFD French Overseas Departments and Collectivities AFD Group’s commitment authorisations in French Overseas Departments and Collectivities in 2017bstood at €1.54bn, slightly lower than the target of €1.65bn set at the start of the year and the 2016bapproval rate of €1.59bn (-3% in total, -6% in terms of ongoing operations). This fall was primarily due to a decrease in public sector activity: many projects related to waste and community care and the investments approved for the progress contracts of the French Overseas Departments’ water plan (1) were put back to 2018. Subsidised loans amounted to €229M, of which €48M was granted to the equivalent Pacific Green Fund (PSP Vert) compared to the €390M initially forecast. 1.5.3.3 Proparco, foreign countries Proparco’s 2017bapprovals stood at €1.38bn, up 4% on 2016band in line with the 2017bbusiness plan objectives. It recorded loan commitments of €1bn, an increase of €63M or 7%: the increase reflects the €135M increase in local currency financing (affecting 9bprojects) plus a direct investment project. Equity investments increased accordingly by €50M, or 26%.

(1) Put in place by the Ministries for the Environment and the French Overseas Departments and Collectivities, the “French Overseas Department water plan” provides a response to the problems encountered in the water sector in Guadeloupe, Guyana, Martinique, Réunion, Mayotte and Saint-Martin. It aims to improve the drinking water supply and wastewater drainage infrastructures by recommending the drafting of a multi-year plan to first fine-tune water governance, then improve engineering and finally consolidate the financing of key projects.

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REGISTRATION DOCUMENT 2017

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