AFD // 2021 Universal Registration Document

CONSOLIDATED FINANCIAL STATEMENTS Statutory auditors’ special report on related-party agreements

PROPARCO’s remuneration is calculated as follows ɸ : P Equity investments subject to a co-investment between AFD and PROPARCO or FISEA ɸ : the remuneration will be calculated as a fraction, equal to 50 ɸ %, of the overall cost of monitoring the line on the basis of the cost accounting of Group AFD ɸ ; P Equity investments not subject to co-investment ɸ : the remuneration will be calculated on the basis of the cost accounting (100 ɸ % of the overall monitoring cost) ɸ ; P Equity investments backed by national resources (only Climate Finance Partnership at the date of this agreement) ɸ : AFD will retrocede to PROPARCO any remuneration received from the State for the mobilisation of funds from programmes 110 or 209 to which the equity investment is backed. In the event that the cumulative cost of appraising and monitoring the line, as derived from the analytical accounts, is higher than this retrocession of commission, AFD and PROPARCO will share the additional cost equally. No financial impact has been recorded by your company under this agreement during the year 2021. Framework mandate agreement for the management of private sector fi nancing activities, signed on 16 July 2021 On 8 and 9 October 2020, AFD’s and PROPARCO’s Boards of Directors respectively approved the terms and conditions for subsidized financing and financing, whether subsidized or not, accompanied by a grant, mobilizing national budgetary resources for the private sector in foreign countries. PROPARCO carries these financing projects on its balance sheet, using the AFD sub-participation mechanism for the associated financing. This agreement with PROPARCO specifies the terms and conditions for managing private sector financing operations in foreign countries which remain recorded in AFD’s accounts and which AFD entrusts to PROPARCO. AFD mandates PROPARCO to identify, instruct, authorize, contract and monitor these private sector financing operations in the name and on behalf of AFD. The mandate framework agreement signed on 16 July 2021 is retroactive. PROPARCO invoices all missions in accordance with cost accounting rules, with an additional margin of (+4 ɸ %) except for (i) ɸ operations calling on Delegated Funds for which the remuneration is provided for in the Special Agreements and (ii) ɸ grant operations calling on Public Funds from the 209 resource. The financial expense recognised by your company in respect of this agreement for the year 2021 amounts to 7,345 thousand euros. New service agreement between AFD and PROPARCO On 13 April 2018, AFD and PROPARCO signed a service agreement retroactive to 1 January 2017 (the “2017 Agreement”) which covers a range of management (IT, accounting, financial, logistical, etc.) and support services provided by AFD’s teams at headquarters and in the network to PROPARCO as well as the provision of staff, as PROPARCO does not directly employ its own staff. The overhaul of AFD’s cost accounting system and the development of certain services, particularly in view of the growth in PROPARCO’s activity and the transfer of activities to the private sector, led to a review of the service agreement. This new agreement also responds to a recommendation by the ACPR to include measures to ensure that outsourcing arrangements meet appropriate performance and quality standards in accordance with their policies, including adequate quality indicators. The new agreement was approved by the Board of Directors on 18 November 2021 and signed on 21 December 2021. No financial impact has been recorded for the year under this agreement. MENA Facility Framework Agreement signed on 28 July 2021 The purpose of this facility is to finance beneficiaries in the target countries of the agreement. This agreement covers the terms and conditions for the use of this facility, in particular the distribution of the subsidy envelope according to the various tools that can be mobilised. The financial expense recognised by your company in respect of this agreement for the year 2021 amounts to 560 thousand euros. Agreements already approved by the board of directors AGREEMENTS APPROVED IN PRIOR YEARS THATWERE IMPLEMENTED DURING THE YEAR Pursuant to Article ɸ R. ɸ 225-30 of the French Commercial Code, we were informed of the following agreements, approved by the Annual General Meeting in prior years, which were implemented during the year. With societe 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 2021. With les societes de credit pour le developpement de la martinique (sodema), pour le developpement de la guadeloupe (sodega) et la societe fi nanciere pour le developpement economique de la guyane (so fi deg)

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2021 UNIVERSAL REGISTRATION DOCUMENT