AFD // 2021 Universal Registration Document

First page Table of contents Next page Last page

Message from the CEO	2
Our key figures	3
Our 2018-2022 strategy	5
4 Main operation regions	6
Methodology and glossary	8
1. Presentation of AFD	9
1.1 General information	10
1.1.1 Legal status	10
1.1.2 General information about AFD’s share capital	10
1.1.3 Current breakdown of share capital and voting rights	11
1.1.4 AFD’s securities market	11
1.1.5 Dividends	11
1.2 AFD Group’s 2018-2022 strategy	11
1.2.1 AFD Group’s missions and commitments	11
1.2.2 AFD Group’s action	11
1.3 AFD operations	12
1.3.1 Overview	12
1.3.2 AFD activities conducted on its own behalf	12
1.3.3 Other AFD activities	13
1.3.4 AFD mandate-specific activities	14
1.3.5 AFD’s operating scope (see Appendix I)	14
1.3.6 Information about any restrictions on the use of capital that have materially affected, or could materially affect, directly or indirectly, the issuer’s operations	14
1.4 Financing of own-account activities	15
1.5 AFD Group	17
1.5.1 Scope of consolidation	17
1.5.2 Information about subsidiaries	17
1.5.3 Presentation of subsidiaries	18
1.6 Activities of the Agence Fran.aise de D.veloppement Group in 2021	20
1.6.1 International context	20
1.6.2 Information about offi ces and activities at 31 December 2021	23
1.6.3 AFD Group activities	23
1.6.4 AFD’s activities in foreign countries	26
1.6.5 AFD activities in French Overseas Departments and Collectivities	33
1.6.6 Intellectual production	35
1.6.7 Proparco’s activity	38
2. Statement of Non-Financial Performance	39
2.1 The business model	41
2.2 Identifi cation of the main non-fi nancial challenges and risks	41
2.3 Managing the risks and impacts of our action	44
2.3.1 AFD’s management of environmental and social risks, and the procedure for managing complaints	44
2.3.2 Proparco’s management of environmental and social risks, and the procedure for managing complaints	46
2.3.3 Human Rights due diligence	48
2.4 Contribution of the Group’s activity to sustainable development	50
2.4.1 Impacts of AFD’s activity	50
2.4.2 Impacts of Proparco’s activity	52
2.4.3 Impact of the Group’s activity on climate change	54
2.4.4 Impacts related to the Group’s activity in reinforcing social relations	56
2.5 Transparency and dialogue with stakeholders	57
2.5.1 Transparency of funds granted	57
2.5.2 Transparency of relations with French and European parliamentarians	58
2.5.3 Dialogue with stakeholders	58
2.6 Coordination with development players: the “Priority to partnership”	59
2.6.1 Partnership with civil society organisations	59
2.6.2 Partnership with European and international players	60
2.6.3 Support for project management and capacity-building	61
2.7 Fair practices	62
2.7.1 Initiatives to prevent corruption, fraud, money laundering, terrorist financing and tax evasion	62
2.7.2 Checks made during a projects life cycle	62
2.7.3 Checks carried out as part of the foreign public procurement process	63
2.7.4 Counterparty commitments	63
2.7.5 Information escalation systems	63
2.7.6 Training of Group employees	63
2.7.7 Initiatives undertaken to prevent tax evasion	64
2.7.8 Specific risks of non-compliance related to the Covid-19 crisis	64
2.8 A meaningful work environment	65
2.8.1 The ethics system	65
2.8.2 Skills development, employability, training	65
2.8.3 Social dialogue and employee relations	66
2.8.4 Promotion of professional equality and diversity	67
2.8.5 Quality of employee working conditions and safety	68
2.9 Report by one of the Statutory Auditors, appointed as independent third party, on the consolidated non-financial statement	71
3. Corporate governance	75
3.1 Report on corporate governance	76
3.1.1 Separation of the functions of Chairperson and Chief Executive Officer	76
3.1.2 Executive Committee	77
3.1.3 The Board of Directors	77
3.1.4 Remuneration and benefits of the executive corporate officers	82
3.1.5 Remuneration and benefits of the corporate officers	82
3.1.6 Other information	82
3.2 Remuneration policy and practices	84
3.2.1 Remuneration policy governance	84
3.2.2 Main features of the remuneration policy	84
3.2.3 Information about remuneration for executive officers and individuals whose professional activities have a significant impact on the company’s risk profile	86
4. Risk management	87
4.1 Risk factors	88
4.1.1 Banking and financial risks	88
4.1.2 Non-financial risks	93
4.1.3 Health and safety risks	95
4.2 Basel III Pillar 3	96
4.2.1 General principles	96
4.2.2 Scope of application	96
4.2.3 Equity	96
4.2.4 Risk exposure and evaluation procedures	99
4.3 Risk management	105
4.3.1 Internal control and risk monitoring	105
4.3.2 Internal control procedures and organisation of audit trail for accounting and fi nancial information (Article L.225-100-1-5)	108
4.3.3 Credit risk	109
4.3.4 Comprehensive interest rate, foreign exchange, liquidity and market risks	109
4.3.5 Major risk ratio	109
4.3.6 Other operational risks	109
5. Financial information	113
5.1 Recent changes and future outlook	114
5.1.1 Recent changes	114
5.1.2 Future outlook	114
5.1.3 Borrowings	115
5.1.4 Trend information	115
5.1.5 Signifi cant change in the issuer’s financial position	115
5.2 Events after the reporting period	115
5.3 Economic presentation of the consolidated financial statements	116
5.3.1 Consolidated balance sheet	116
5.3.2 Consolidated income statement	119
6. Consolidated financial statements prepared in accordance with IFRS accounting standards adopted by the European Union	123
6.1 Overview	124
6.1.1 Balance sheet at 31 December 2021	124
6.1.2 Income statement at 31 December 2021	126
6.1.3 Net income, gains and losses recognised directly as equity at 31 December 2021	127
6.1.4 Statement of changes in shareholders’ equity from 1 January 2020 to 31 December 2021	128
6.1.5 Cash flow statement at 31 December 2021	129
6.2 Notes to the consolidated financial statements	130
6.2.1 Significant events at 31 December 2021	130
6.2.2 Accounting standards applied to Agence Française de Développement	131
6.2.3 Principles for the preparation of the consolidated financial statements of the AFD Group at 31 December 2021	133
6.2.4 Notes to the financial statements at 31 December 2021	145
6.2.5 Risk information	162
6.2.6 Additional information	171
6.3 Statutory auditors’ report on the consolidated financial statements	175
6.4 Statutory auditors’ special report on related-party agreements	180
6.5 Statutory auditors fees	184
7. AFD’S annual parent company financial statements	185
7.1 Highlights of the financial year	189
7.1.1 Balance sheet growth	189
7.1.2 Financing of the Group’s activity	189
7.1.3 Appropriation of 2020 earnings	189
7.1.4 Increase in AFD’s capital allocation from the French State	189
7.1.5 Fisea capital increase	189
7.1.6 Extension of international moratoria – Covid-19 crisis	189
7.1.7 Application of the new defi nition of default to the scope of sovereign loans	189
7.2 Accounting principles and assessment methods	190
7.2.1 Overview	190
7.2.2 Conversion of foreign currencies	190
7.2.3 Loans to credit institutions and customers	190
7.2.4 Short-term and long-term investments	191
7.2.5 Shares in related businesses, equity securities and long-term investments	191
7.2.6 Bonds	191
7.2.7 Grants	192
7.2.8 Fixed assets	192
7.2.9 Forward financial instruments	192
7.2.10 Provisions	193
7.2.11 Reserve for General Banking Risk (RGBR)	196
7.2.12 Subordinated debt	196
7.2.13 Financing commitments	197
7.2.14 Guarantee commitments	197
7.2.15 Disclosure on non-cooperating States and territories	197
7.2.16 Other information related to consolidation	197
7.2.17 Events after the reporting period	197
7.3 Notes to the financial statements at 31 December 2021	198
7.4 AFD’s financial results over the last five financial years	210
7.5 Statutory auditors’ report on the financial statements	211
8. Person responsible for the Registration Document and the audit of the financial statements	217
8.1 Name and position	218
8.2 Certification of the person responsible	218
8.3 Name, address and qualification of the financial statements’ statutory auditors	218
8.4 Information policy	218
9. Additional information	219
9.1 Cross-reference table of the management report	220
9.2 Incorporation by reference	221
9.3 Cross-reference table between Appendices 1 and 2 of the delegated regulation 2019/980 and the Universal Registration Document	221
9.4 Cross-reference table of the CRR articles and the Pillar III report tables	224
9.5 Appendix 1 – AFD’s operating region	227
9.6 Appendix 2 – AFD balance sheet using French standards (simplified)	229
9.7 Appendix 3 – AFD income statement using French standards (simplified)	230
9.8 Appendix 4 – Key ratios and indicators	231
9.9 Appendix 5 – Results of operating activities for the last 5 reporting years (parent company basis)	231
9.10 Appendix 6 – AFD approvals	232
9.11 Appendix 7 – Summary table of AFD’s and Proparco’s loans in foreign countries	233
9.12 Appendix 8 – Table of Proparco’s approvals	236
9.12.1 Appendix 8.1: part 1	236
9.12.2 Appendix 8.2: part 2	237
9.13 Appendix 9 – Note on the Statement of Non-Financial Performance methodology	238
9.14 Appendix 10 – Statement of Non-Financial Performance appendices	241
9.14.1 Statement of Non-Financial Performance appendix 1: Materiality matrix	241
9.14.2 Statement of Non-Financial Performance Appendix 2: Grenelle II Law indicators – Labour information	242

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