AFD - 2018 Registration document

PRESENTATION OF AFD

AFD Group

1.5.3.3 Fisea Fisea (Investment and Support Fund for Businesses in Africa) was created in April 2009. It is managed by Proparco on behalf of AFD, within the framework of a regulated agreement. In 2018, Fisea’s net approvals amounted to €48M (excluding TA). They comprise 7 investments, 4 of which in funds (2 multi-sector SME funds, 1 social business fund and 1 infrastructures funds) and 3 direct investments in companies (2 in the microfinance sector and 1 in the services sector). Total approvals (excluding TA) as of 31 December 2018 amount to €128M. Investment funds represent 86% of assets and direct Banque Socredo is a full-service bank established in French Polynesia in 1959. It has 27 permanent offices. It also organises regular visits to Tahiti’s most distant islands, which have little or no access to basic banking services. This special positioning distinguishes Socredo from other local banks. Its activities extend to every sector of the economy and, more particularly, to several key segments such as the marine sector and tourism. It is heavily involved in marine transport that serves distant archipelagos such as the Tuamotu Archipelago, the Marquesas and the Austral Islands, in air transport as a shareholder in carriers Air Tahiti and Air Tahiti Nui, as well as in the housing sector. For many years, Banque Socredo has been the top banking institution in Papeete, ahead of Banque de Polynésie (Société Générale Group) and Banque de Tahiti (Groupe BPCE), with 44.7% of the lending market and nearly 42.4% of the deposit market at end-December 2018. In addition to its banking activities, Banque Socredo has five main subsidiaries through which it extends its operating activities: OSB (Océanienne de services bancaires, specialised in e-banking), ODI (Océanienne d’industrie, specialised in cheque processing and electronic publishing), Ofina (Océanienne de financement, which sends and receives cash for American Express cardholders in the French Pacific), OCSD (Océanienne de conservation sécurisée de données, a secure data storage centre) and finally OCA (Océanienne de centre d’appel, a call centre). The Bank also wholly owns OCI (Océanienne de Capital Investissement) which manages the equity stakes and development interests of the “venture capital” activity. In 2016, it created OFIMMO (Océanienne de financement Immobilière), a company which is wholly-owned by OCI, with a view to preparing projects as part of the OLS-P (Social-private housing body) initiative. At 31 December 2018 (1) , Banque Socredo employed a workforce of 468 people. Its balance sheet total amounted to €2.36bn, mainly comprising customer receivables (€1.72bn). The bank generated net banking income (NBI) of €81.1M and net income of €14.8M, compared with €72.9M and €13.5M respectively in 2017. In 2018, AFD received dividends of €1.4M for the 2017 financial year. investment represents 14%. 1.5.3.4 Banque Socredo

1.5.3.5 Soderag The Regional Development Company of the West Indies-French Guiana (Soderag) is a regional development company. In 1995, at the request of its governing bodies, AFD took control of the firm. The extent of its losses and poor prospects led to Soderag’s liquidation in July 1998. AFD took over its liabilities and is serving as the company’s receiver. Cash advances by AFD to this subsidiary amount to €106M and are fully written down in AFD’s financial statements. 1.5.3.6 Sogefom The French Overseas Guarantee Fund Management company (Sogefom) is a company that manages guarantee funds in the French Pacific Collectivities, providing partial guarantees for financing operations undertaken by credit institutions in this zone. In particular, its aim is to support small and very small enterprises (SMEs and VSEs) in a range of economic sectors. AFD manages Sogefom within the framework of a regulated agreement. After experiencing a sharp rise in 2015 (up 61.8%), followed by a 10.3% fall in 2016 and little change in 2017 (up 2.1%), new production recorded a further increase in value of 41% in 2018, which breaks down as follows: P in New-Caledonia, after falling successively for several years, Sogefom’s new production increased in 2018, up 55% in value over 2017 and 25% in the number of guarantees granted. It amounted to €7.7M. This year it was able to offset the amortisation of the outstandings which were €28.5M compared to €28.4M at the end of 2017; P in French Polynesia, production has been rising since 2015. The 2018 figure was €23.9M versus 17M in 2017 (up 41%) with 404 guarantees granted (347 in 2017). The gap between the two geographical locations continues to grow given that outstandings guaranteed were €57.2M at the end of 2018, double the New Caledonia figure; P in Wallis and Futuna, production remained flat with only one application approved in 2018 worth €48K. Production remained unchanged from 2017. The gross consolidatedoutstandingguarantees at 31December 2018 (€85.9M) increased by 15% compared with 31 December 2017 (€74.9M). 1.5.3.7 Property companies In connection with its operations in French Overseas Departments and Collectivities, AFD was a shareholder, alongside the Government and local authorities, of six property companies, the SIDOMs. At the end of 2015, the Government announced its intention to reorganise the shareholding of the SIDOMs by transferring its equity interests to a public operator specialising in social housing, the Société Nationale Immobilière, a wholly-owned subsidiary of the Caisse des Dépôts et Consignations. It asked AFD to sell its own shares at the same time as the transfer. Following negotiations between the State and the SNI, an agreement was reached for a sale in two stages: first the purchase by SNI of 34% of the companies’ capital, including all AFD’s shares in 2017, then an option to purchase the balance of

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(1) The figures at 31 December 2018 are provisional (they have not been reviewed by the statutory auditors and the accounts have not been approved).

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REGISTRATION DOCUMENT 2018