AFD - 2019 Universal registration document

CONSOLIDATED FINANCIAL STATEMENTS PREPARED IN ACCORDANCE WITH IFRS

Statutory auditors’ special report on regulated agreements

Agreement between AGENCE FRANÇAISE DE DÉVELOPPEMENT and the CNSL for the fi nancing of a project to improve the b quality of primary schools in Sri Lanka On 11 April 2018, the AFD Board of Directors approved the signature of a regulated agreement with the Comité National de Solidarité Laïque (CNSL) for the financing of a project to improve the quality of education at primary schools in Sri Lanka and promote exchange and coordination between state and non-state players. To this end, AFD provided the CNSL with a grant of €375,000. The agreement between stakeholders was signed on 21 December 2018. At 31 December 2019, AFD had paid €208,000. Agreement between AGENCE FRANÇAISE DE DÉVELOPPEMENT and the CNSL for the fi nancing of a project entitled Coalition Education Phase 2 – Les OSC (Organisations de sociétés civiles) françaises engagées pour l’éducation dans le monde (French civil society organisations committed to education worldwide). On 30 January 2018, the AFD Board of Directors approved the signing of a regulated agreement with the Comité National de Solidarité Laïque. Phase 2 of the project aims to further develop an initiative launched in 2015 to construct a platform of French Civil Society Organisations (OSCs) committed to education worldwide. The maximum grant amount is €272,000. At 31 December 2019, AFD had paid €171,000. With Société de Gestion des Fonds de Garanties d’Outre-Mer (SOGEFOM) Service agreement On 15 March 2004, AFD and SOGEFOM signed a service agreement effective retroactively to 28 August 2003. Under this agreement, AFD provides management, representation and technical support services to SOGEFOM. AFD was paid a fee of €2,002,000 under this agreement in 2019. With Société de Développement Régional Antilles-Guyane (SODERAG) Cessation of interest on advances to shareholder current accounts In 1997, 1998 and 1999, AFD granted SODERAG interest-bearing current account advances in the amount of €47M. These advances were intended to reinforce SODERAG’s capital. Because of SODERAG’s irremediably compromised position since it went into voluntary liquidation in 1998, and given AFD’s status as sole shareholder, on 5 July 2001 AFD’s Supervisory Board authorised the cessation of interest on all of its shareholder current account advances. Provision of non-interest bearing shareholder advances to SODERAG Between 1999 and 2005, AFD provided its subsidiary with additional non-interest-bearing current account advances to SODERAG so that its liquidation could continue. At 31 December 2019, SODERAG’S debt to AFD under agreements signed between 1997 and 2005 totalled €106,346,000. With Sociéte de Crédit pour le Développement de la Martinique (SODEMA), Sociéte de Crédit pour le développement de b la b Guadeloupe (SODEGA) and Société Financière pour le Développement économique de la Guyane (SOFIDEG) Agreements relating to the re fi nancing and guaranteeing of the customer loan portfolios taken over from SODERAG by the three SDCs (departmental credit companies) Under the terms of the protocol agreements signed in October and November 1998 between AFD, SODERAG and the three SDCs (SODEMA, SOFIDEG and SODEGA), the SDCs acquired the portion of SODERAG’S customer loan portfolio relating to their department, as SODERAG was in liquidation. In September and October 2000, three additional protocol agreements were signed with the three departmental credit companies, setting out the terms for managing the portfolio of loans from SODERAG. At 31 December 2019, outstanding loans in AFD’s books amounted to €9,641,000 for SODEMA, €13,108,000 for SODEGA and €535,000 for SOFIDEG. Two thirds of the interest and early repayment charges received by the SDCs from customer loans are paid to AFD. The loans’ principal is repaid by the SDCs to AFD to the extent that it is repaid by customers, bearing in mind that the total repayment is limited to the acquisition value of the loans.

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UNIVERSAL REGISTRATION DOCUMENT 2019