AFD // 2021 Universal Registration Document

PRESENTATION OF AFD AFD Group

In 2021, a delegated technical assistance project for a total amount of €180K was signed to support the reinforcement of the IT security of a microfinance group operating mainly in Sub Saharan Africa. Disbursements for the two vehicles amounted to €40M

In addition to its banking activities, Socredo has three main subsidiaries which are extensions of its operating activities: OSB (Océanienne de services bancaires, specialised in digital banking, checking and publishing), OFINA (Océanienne de financement, which sends and receives cash for American Express cardholders in the French Pacific), and OCA (Océanienne de centre d’appel, a call centre). The Bank also wholly owns OCI (Océanienne de Capital Investissement) which manages the equity investments and development interests of the “venture capital” activity. In 2016, it created OFIMMO (Océanienne de financement Immobilière), a company which is wholly-owned by OCI, with a view to preparing projects as part of the OLS-P (Social-private housing body) initiative. At 31 ɸ December 2021, Socredo employed 490 ɸ people. Its forecast results show a balance sheet total of €2.93bn, consisting mainly of customer loans (€2.13bn). The bank should generate net banking income (NBI) of €77M and net income of €9.4M, compared with €74.6M and €2.5M respectively in 2020. All regulatory ratios are satisfactory. In the context of the health crisis, since March ɸ 2020, Banque Socredo has been granting deferrals for a maximum of 6 ɸ months to its customers (companies, professionals and individuals) affected by the health crisis. Between March ɸ 2020 and the end of December ɸ 2021, €366M in equity were carried forward, of which 73% focused on five sectors: retail, transport, real estate, services and industry. Socredo also granted over €144M in SGLs, mainly in 2020 (30% of loan production for the year). With 35% of Socredo’s share capital, AFD is considered by the ACPR to be the reference banking shareholder, which implies an obligation of financial and technical support to its subsidiary. AFD is actively involved in Socredo’s governance with three out of ten Directors (with five Directors from French Polynesia and two from the BRED). According to the recommendations of the ACPR, Socredo did not pay dividends to its shareholders in respect of its earnings recorded at the end of 2020. 1.5.3.4 Soderag The Regional Development Company of the Antilles-French Guiana (Soderag) is a regional development company in which AFD took control in 1995 at the State’s request. The extent of its losses and poor prospects led to the company’s liquidation in July ɸ 1998. AFD took over its liabilities and is serving as the company’s receiver. Cash advances by AFD to this subsidiary amount to €114M and are fully written down in AFD’s parent company financial statements. 1.5.3.5 Sogefom The French Overseas Guarantee Fund Management company (Sogefom) is a company that manages guarantee funds in the French Pacific Collectivities, providing partial guarantees for financing operations undertaken by credit institutions in this zone. In particular, its aim is to support small and very small businesses (SMEs and VSEs) in a range of economic sectors. AFD manages Sogefom within the framework of a regulated agreement.

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(compared to €20M in 2020). 1.5.3.3 Banque Socredo

Socredo (50% Country, 35% AFD and 15% BRED), a French semi-public company (société anonyme d’économie mixte) (law of 1946) with share capital of €184.4M, approved as a bank since 1984, is a major player in the financing of the Polynesian economy. It notably ensures a presence across the region, unlike the competing commercial banks. Its activities extend to every sector of the economy and, more particularly, to several key segments such as housing, the marine sector and tourism. It is heavily involved in marine transport that serves distant archipelagos such as the Tuamotu Archipelago, the Marquesas and the Austral Islands, in air transport as a shareholder in carriers Air Tahiti and Air Tahiti Nui, as well as in the housing sector. In 2019, Socredo adopted a new three-pillar strategy: (i) ɸ being a committed player in the sustainable development of Polynesia, (ii) ɸ placing innovation and digital technologies at the heart of improving customer relations and (iii) ɸ developing operational efficiency to support the Bank’s transformation. While the last two pillars should ensure the sustainability of Socredo’s financial model through its digital transition, as well as its operational efficiency, above all, this new strategy has firmly anchored the concept of “development bank” in Socredo’s DNA. It has placed the following objectives at the centre of the Bank’s action: P banking inclusion, i.e. access to banking services for all (vulnerable individuals, associations, VSEs/SMEs), and the presence of branches in remote archipelagos; P taking into account the environmental and social dimensions of projects financed, with a sustained dialogue with clients on environmental issues and 100% of files reviewed in view of sustainable development in 2023; P supporting the Country’s priorities and public policies, notably blue and green economies, and economic development and social inclusion in the archipelagos. Socredo therefore differs greatly from the two competing banks on the market (Banque de Polynésie and Banque de Tahiti, subsidiaries of Société Générale and Groupe BPCE) as a result of its unique positioning in inclusive banking (in 2020, 59% of the Bank’s clients were part of this segment, comprising most of the relevant individuals, associations and professionals in the region) and in Green Finance. With this in mind, on 7 ɸ December, it organised the first event on this theme in the Pacific Ocean, thus proving its leading role in the sector. Socredo is the leading banking institution in Papeete with a market share of 48.4% for loans to individuals and nearly 26.1% of loans to companies, as well as approximately 39.7% of the inflows from deposits at the end of December ɸ 2021.

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2021 UNIVERSAL REGISTRATION DOCUMENT