AFD - 2018 Registration document

CONSOLIDATED FINANCIAL STATEMENTS PREPARED IN ACCORDANCE WITH IFRS ACCOUNTING PRINCIPLES ADOPTED BY THE EUROPEAN UNION Notes to the consolidated financial statements

❙ Assets at amortised cost: loans and receivables due from customers

Performing assets

Doubtful assets Stage 3

Stage 1

Stage 2

Total

In thousands of euros

At 1 January 2018

9,839

114,441

400,033

524,313

Change in impairments of loans at amortised cost to customers New loans: purchased, granted, originated

300

2,057

15,186 25,988 41,175 441,208

17,543 34,268 51,812 576,125

Change in credit risk parameters over the period

-6,691 -6,392 3,447

14,971 17,029 131,470

Total change in impairments

AT 31 DECEMBER 2018

❙ Financing and guarantee commitments

Performing assets

Doubtful assets Stage 3

Stage 1

Stage 2

Total

In thousands of euros

At 1 January 2018

8,112

68,510

-

76,622

Change in impairment of financing and guarantee commitments New loans: purchased, granted, originated Change in credit risk parameters over the period

1,237 -7,284 -6,047 2,065

28,552 -12,087 16,464 84,974

-

29,789 -10,845 18,944 95,566

8,527 8,527 8,527

Total change in impairments

AT 31 DECEMBER 2018

6.2.6.2 Liquidity risk The notion of liquidity refers to av company’s ability to finance new assets and meet obligations as they mature. This risk is monitored as part of asset and liability management for AFD, Proparco. AFD has a Euro Medium Term Notes (EMTN) programme for not more than €40.0bn enabling it to complete financing transactions with fewer financial disclosure requirements. Short-term liquidity risk prevention relies on a programme of short term Negotiable European Commercial Papers (“NEU CPs”) amounting to €4bn. There is also a €2bn programme of Negotiable European Medium-Term Notes (“NEU MTNs”). The portfolio of long-term investment securities also recognises a liquidity reserve that can be mobilised through market

repurchase agreements. This portfolio has a supplementary securities portfolio created in the context of an additional liquidity reserve to meet the LCR. These securities may also be mobilised through repurchase agreements. The notional amount outstanding of these portfolios amounted to €1.83bn at the end of 2018. Furthermore, operating cash flow is maintained at all times at a level equivalent to a minimum of six months of activity. The liquidity risk measuring and monitoring system includes both regulatory ratios and internal indicators. The various liquidity risk measuring and monitoring indicators reveal very moderate exposure to liquidity risk. The statement of financial assets and liabilities by contractual maturity presents the maturity of financial liabilities at 31 December 2018.

6

Less than 3 months

3 months to 1 year

1 year to 5 years

More than 5 years Book value

Contractual term to maturity

Liabilities Financial liabilities at fair value through profit and loss

16

1,773

86,387 85,755

250,982 815,503

339,159 940,339

Hedging derivatives (liabilities)

1,110

37,972

Financial liabilities valued at amortised cost

1,656,846 2,291,827 12,895,243 15,462,836 32,306,751

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REGISTRATION DOCUMENT 2018