AFD_REGISTRATION_DOCUMENT_2017

1 PRESENTATION OF AFD

Financing activities on its own behalf

Financial transaction tax (FTT) A portion of the FTT is assigned directly to AFD. Inb2017, AFD received €270M from this tax. Loans from the State (RCS) AFD contracts loans with the State for a period of 30byears, including 10byears deferred at 0.25%. Apart from the liquidity which they provide and their eligibility for Tierb 2b of the regulatory capital, these resources contribute to subsidising the outstandings that justify the use of State rates: the financial advantage in comparison with market resources is thus measured and injected into operations making use of subsidies. For 2017, AFD received €160M, equating to the first part of the final tranche of the €280M set aside for the series of measures to increase the equity capital of the Office (RCS eligible exceptionally for compartment AT1 of the regulatory capital). Market borrowings AFD’s bond issues totalled €6,233M in 2017. AFD has made four bond issuances in the form of public issues on the euro and US dollar markets for a total of €4,292M: P €1,500M for 5.25byears (maturity April 2022); P €1,000M for 15byears (maturity July 2032); P $1,250M for 3b years (equivalent to €1,042M; maturity September 2019); P €750M for 6byears (maturity November 2023) in the form of climate bonds. AFD has also undertaken: P four tap issues for a total of €918M (three of these on the Euro market): P $200M for 1.8byears in floating rate note form (equivalent to €168M; maturity September 2019); P six private placements on the euro, US dollar and Australian dollar markets for a total of €1,023M: P $300M for 2byears (equivalent to €264M; maturity July 2019), P AUD50M for 10byears (equivalent to €33M; maturity July 2027), P $500M for 2byears in floating rate note form (equivalent to €421M; maturity September 2019), P €250M for 7.2byears (maturity April 2024), P €350M for 14.8byears (maturity July 2032), P €150M for 14.8 years (maturity July 2032),

P the agreement of 24b November 2017b related to the management by AFD of the loan granted to the African Development Fund (ADF) for the French representation. Furthermore, pursuant to Articleb10bof Act 2014-773 of 7bJuly 2014bon Guidance and planning related to development and international solidarity policy, AFD is authorised to carry out activities on behalf of third parties such as the European Union, international institutions and organisations, foreign governments, any public authority, financial institutions and other development banks or public or private institutions. To this end, it has been entrusted with managing loans delegated by the European Commission or other backers (the UK’s DFID, the Monegasque Cooperation, etc.). In accordance with international accounting regulations, these activities are excluded from the consolidated balance sheet. AFD’s compensation for this type of activity is decided on a case- by-case basis as set out by the agreement and is intended to cover AFD’s costs. The geographical areas in which AFD is authorised to operate are listed in Appendix 1, with the understanding that its operating mandate (forms of intervention, sectors, etc.) differs according to the country. The CICID has drawn up a list of priority countries on which will be focussed half of the public subsidies and two-thirds of the grants that AFD implements. The CICID also decided to strengthen cooperation with a number of other priority countries whose development and stability are a priority for France. In this context, the French government authorised AFD to conduct research in the Western Balkans and in Ukraine. 1.3 FINANCING ACTIVITIES ON ITS OWN BEHALF AFD’s lending and subsidy activities are financed by different kinds of resources. For activities carried out on its own behalf, AFD uses three main types of financing: Budgetary resources P funds for foreign country and French Overseas Departments and Collectivities loan subsidies (€218M of credit appropriations received in 2017); P subsidies received from the State for project subsidy and NGO activities (€195M of credit appropriations received in 2017). 1.2.5 AFD’s operating scope (see AppendixbI)

P €205M for 20byears (maturity October 2037), P €100M for 13.5byears (maturity June 2031).

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REGISTRATION DOCUMENT 2017

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