AFD_REGISTRATION_DOCUMENT_2017

1 PRESENTATION OF AFD AFD operations

1.2 AFD OPERATIONS 1.2.1 General comments Main missions

Contractual targets and resources The purpose of the contractual targets and resources (COM) agreed between the French federal government and AFD is to define AFD’s objectives and schedule its resources. They cover all of AFD Group’s activities, and set the guidelines for them, in foreign countries and the French Overseas Departments and Collectivities, while considering goals and characteristics unique to each type of intervention. It also covers the coordination of intellectual output, communication, support and advisory activities for the State and the policy for AFD partners. The next contractual targets and resources are currently under negotiation with the French Government 1.2.2 Activities of AFD on its own behalf The following types of financing are available: Subsidies Priority operations in priority poor countries financed by MAEDI budget resources (Programme 209) and by the share of the Financial Transaction Tax (FTT) directly allocated to AFD. Subsidies are broken down into (i) financing project aid, (ii) advance research funds or supporting projects (iii) equity stakes in partnerships and facilities. P The non-sovereign pricing structure includes subsidised products with subsidy levels that vary primarily according to counterparty and country risk. This subsidy is obtained through the use of direct subsidies from the State’s budget resources. The structure also includes a market-rate product that is entirely unsubsidised. P The sovereign pricing structure includes concessional products obtained due to direct subsidisation and/or use of RCSs from the French Treasury. The level of subsidisation varies according to country and project. The structure also includes a loan with indirect subsidisation. Guarantees Guarantee activity in foreign countries entails, on the one hand, commitments made directly by AFD to cover such operations as borrowings, issue subscriptions or cash facilities and, on the other hand, guarantee commitments through Ariz, its guarantee facility. This facility guarantees private-sector outstandings through local banks that request it. Backed by capital of €295M, Ariz is available to any AFD operating region provided it meets the geographical objectives set in its contractual targets and resources. Ariz offers two standard individual guarantee and portfolio guarantee products and additional innovative products such as a capital guarantee. In foreign countries P Ongoing operations P P Loans P

AFD is responsible for financing international development projects and programmes within the strategic framework defined by the committee for International Cooperation and Development (the CICID). The framework agreement of 4bJanuary 2007bbetween AFD and the French state defines the latter’s public service role and the financial relationship between them. AFD is also responsible for financing development in the French Overseas Departments and Collectivities and in New Caledonia. Under its bylaws, AFD may also carry out other activities and provide services related to its mission: P It is also responsible for directly or indirectly providing technical expertise to its beneficiaries (ArticlebR.515-6 of the CMF); P In addition to carrying out operations on its own behalf, it is authorised to conduct a certain number of operations on behalf of third parties: P As such, it may represent financing companies, other French or international credit institutions, the European Union, foreign governments or international organisations and institutions (ArticlebR.515-13 of the CMF). Since 2001, it has represented Caisse des Dépôts et Consignations for some of its activities in the French Pacific Collectivities and in Saint Pierre and Miquelon. Since 1bJanuary 2014, it has represented Bpifrance Financement in the French Overseas Departments and Collectivities, P It can also manage activities funded by the European Union, international institutions and organisations and foreign governments, as well as by local authorities, credit institutions and other development banks or public or private institutions (Articleb10bof Act 2014-773 of 7bJuly 2014 Guidance and planning related to development and international solidarity policy). AFD also manages operations financed by the French State’s budget on behalf and at the risk of the latter (ArticlebR.515-12 of the CMF); P It has the task of managing the annual loan portfolio delegated by the State for financing projects proposed by NGOs and ensuring project design and evaluation; P AFD is increasingly focused on its intellectual output, in other words, discussion, production, capitalisation and research relating to development aid and sustainable development issues; P Lastly, AFD, provides training and continuing education for top-level managers in the foreign countries and the French Overseas Departments and Collectivities in which it is active via the Development Campus (formerly CEFEB: Centre for Financial, Economic and Banking Studies), which it founded in 1961.

P Equity investment in foreign countries P Mandate-specific operations

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REGISTRATION DOCUMENT 2017

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