AFD - 2018 Registration document

PRESENTATION OF AFD

Financing activities on its own behalf

1.4 Financing activities on its own behalf

1

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 (€202M of credit appropriations received in 2018); P subsidies received from the State for project subsidy and NGO activities (€262M of credit appropriations received in 2018). Financial transaction tax (FTT) A portion of the FTT is assigned directly to AFD. In 2018, AFD received €270M from this tax. Loans from the State (RCS) AFD contracts loans with the State for a period of 30 years, including 10 years deferred at 0.25%. Apart from the liquidity that they provide and their eligibility for Tier 2 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. In 2018, AFD received €208M of RCS funds. In addition, AFD received €120M, equating to the second 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 €6,463M in 2018. AFD has made four bond issuances in the form of public issues on the euro and US dollar markets for a total of €4,110M: P $1,500M for 3 years (equivalent to €1,210M; maturity March 2021); P €500M for 7 years (maturity October 2025) in the form of climate bonds. AFD has also undertaken: P €1,400M for 10 years (maturity January 2028); P €1,000M for 16 years (maturity October 2034);

P 8 tap issues for a total of €776M;

P 18 private placements on the euro and US dollar markets for a total of €1,575M.

Based on the 2018 issues, the nominal burden of AFD debt was €32.68bn as of 31 December 2018. The breakdown by maturity date is as follows:

In M€

5 000,00

Other

4 500,00

ưƮƟ

4 000,00

3 500,00

Ơưƭ

3 000,00

2 500,00

2 000,00

1 500,00

1 000,00

500,00

0

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2031

2032

2033

2034

2037

2038

2043

2044

2048

2053

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REGISTRATION DOCUMENT 2018