AFD // 2021 Universal Registration Document

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PRESENTATION OF AFD

AFD operations

1.3 AFD operations

1.3.1 Overview MAINMISSIONS

CONTRACTUAL TARGETS AND RESOURCES The purpose of the contractual targets and resources (COM) agreed between the French government and AFD is to define AFD’s objectives and schedule its resources. They cover all of AFD Group’s activities, and set the guidelines for them, in foreign countries and the French Overseas Departments and Collectivities, while considering goals and characteristics unique to each type of intervention. It also covers the coordination of intellectual production, communication, support and advisory activities for the State and the policy for AFD partners. 1.3.2 AFD activities conducted on its ɸ own behalf The following types of financing are available: 1.3.2.1 In foreign countries Current activities P Grants Priority operations in priority poor countries financed by MEAE budget resources (Programme ɸ 209) and by the share of the Financial Transaction Tax (FTT) directly allocated to AFD in 2017 and 2018. Grants are broken down into (i) ɸ financing project aid, (ii) ɸ advance research funds or supporting projects (iii) ɸ equity investments in partnerships and facilities. P Loans P The non-sovereign pricing structure includes subsidised products with subsidy levels that vary primarily according to counterparty and country risk. This subsidy is funded by State budgets. The structure also includes a market-rate product that is entirely unsubsidized. P The sovereign pricing structure includes concessional products obtained due to direct subsidisation and/or use of RCSs from the French Treasury. The level of subsidisation varies according to country and project. The structure also includes a product that is not subsidised by the State. P Guarantees Guarantee activity in foreign countries entails, on the one hand, commitments made directly by AFD to cover such operations as borrowings, bond issue subscriptions or cash facilities and, on the other hand, guarantee commitments through Ariz, its guarantee facility. This facility guarantees private-sector outstandings through local banks that request it. Ariz is available to any AFD operating region provided it meets the geographical objectives set in its contractual targets and resources. Ariz offers two standard individual guarantee and portfolio guarantee products and additional innovative products such as a capital guarantee. P Equity investments in foreign countries.

AFD is responsible for financing international development projects and programmes within the strategic framework defined by the committee for the Interministerial Committee for International Co-operation and Development (CICID). The framework agreement of 20 ɸ July 2021 signed between the French State and AFD defines the latter’s role and public service missions as well as the financial relations between them. AFD is also responsible for financing development in the French Overseas Departments and Collectivities and in New Caledonia. Under its bylaws, AFD may also carry out other activities and provide services related to its mission: P it is responsible for directly or indirectly providing technical expertise to its beneficiaries (Article ɸ R.516-6 of the CMF); P in addition to its operations on its own behalf, it is authorised to carry out a certain number of operations on behalf of third parties: P as such, it may represent financing companies, other French or international credit institutions, the European Union, foreign States or international organisations and institutions (Article ɸ R.515-13 of the CMF), P it is authorised to manage public and private funds in the context of operations financed by the European Union, by international institutions or organisations, by public authorities, by foreign States, by credit institutions and development banks and by public or private legal entities, governed by French or foreign law. It may also entrust the management of public or private funds to the same entities under specific agreements (Article ɸ 10 of Programming Law No. ɸ 2021-1031 of 4 ɸ August 2021 on solidarity-based development and the fight against global inequalities). AFD also manages operations financed by the French State’s budget on behalf and at the risk of the latter (Article ɸ R.515-12 of the CMF); P it has the task of managing the annual loan portfolio delegated by the State for financing projects proposed by NGOs and ensuring project design and evaluation; P AFD is increasingly focused on its intellectual production, in other words, discussion, production, capitalisation and research relating to development aid and sustainable development issues; P lastly, AFD, provides training and further education for top level managers in the foreign countries and the French Overseas Departments and Collectivities in which it is active via the Development Campus (formerly CEFEB: Centre for Financial, Economic and Banking Studies), which it founded in 1961.

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2021 UNIVERSAL REGISTRATION DOCUMENT