AFD - 2019 Universal registration document

CONSOLIDATED FINANCIAL STATEMENTS PREPARED IN ACCORDANCE WITH IFRS

Notes to the consolidated financial statements

Note b 1.2 Debt instruments that do not meet the SPPI criteria

Notional/ Outstanding 31/12/2018

Notional/ Outstanding

31/12/2019

Notes

In thousands of euros

Loans to credit institutions

1.2.1 483,040 482,847 361,640 372,405

Performing loans

469,839

466,558

361,191

366,117

Doubtful outstandings Loans to customers

13,201

16,290

449

6,288

1.2.1 813,498 819,621 771,407 806,755

Performing loans

808,480

799,890

770,131

791,596

Doubtful outstandings

5,017

19,730

1,276

15,159

Title

1,297,882 1,250,529 1,079,517 950,658

Bonds and other fixed-income securities

1.2.2

45,769 52,728

47,173 41,051

106,340

16,723 41,054 892,881 769,238 123,643

UCITS

50,200

Equity stakes and other long-term securities Of which equity stakes held in investment funds Of which equity stakes held directly with a put option

1.2.3 1,199,384 1,162,304

922,978 794,935 128,043

1,022,251 1,025,387

177,133

136,917

TOTAL

2,594,420 2,552,997 2,212,564 2,129,819

1.2.1 Loans that do not meet the SPPI criteria Loan agreements may have an early repayment clause, the contractual amount of which corresponds to a settlement equal to the cost of unwinding an associated hedge swap. The early repayment flows of these loans are considered to be non-SPPI if they do not purely reflect the effect of changes in the reference interest rates. As a result, the AFD Group has identified a loan portfolio which is measured at fair value through profit and loss. The loans are therefore subjected to a valuation exercise based on the methodology for discounting future flows, with a discount rate specific to each loan in accordance with the accounting rules applied by the Group. 1.2.2 Bonds and other long-term securities Bonds and other long-term securities within the AFD Group are debt securities whose contractual flows are not SPPI due to the nature of the flows exchanged. They are therefore measured at fair value through profit and loss (e.g. convertible bonds, etc.).

1.2.3 Equity investments The AFD Group aims to encourage private investment in the developing countries, mainly via its subsidiaries Proparco and Fisea (Investment and Support Fund for Businesses in Africa). It acts primarily through investments in investment funds, as this activity enables it to increase the impact of its financing by supporting a large number of companies doing business in multiple sectors, thus promoting economic growth and the creation of job-creating businesses. The AFD Group also holds direct equity investments with put options for operational purposes. The contractual flows of these financial assets are not SPPI and are therefore measured at fair value through profit and loss.

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UNIVERSAL REGISTRATION DOCUMENT 2019