AFD // 2021 Universal Registration Document

RISK MANAGEMENT Risk factors

❙ Main countries of operation heavily impacted by foreign currencies

Outstandings (1)

Risks 401 216 185 699 445 648 627 1067 1,718

Angola

26

Argentina Armenia Cambodia Ethiopia Georgia Ghana Kenya Serbia Tunisia Turkey TOTAL Sri Lanka

112 134 591 924 256 589 550

Dominican Republic

1,070

79

260 456

214 970

1,652 1,872

1,417

6,932

10,248

(1) Sovereign and non-Sovereign at the end of 2021. Moreover, measuring the consequences of the war in Ukraine on the global economy seems premature and hazardous. The extent and duration of the conflict, its geopolitical impact and the effects of the sanctions imposed on Russia remain as uncertain as they are influential. The table below presents the Group’s exposures to countries in the region outlined.

4

Risks incl. accrued interest not yet due

Outstandings *

Albania Armenia

0

100 190 274 659

139 203 600

Azerbaijan

Georgia

Kazakhstan Montenegro Uzbekistan

12

12 58

8

404

587 260

Serbia Turkey Ukraine TOTAL

79

1,461

1,909

32

35

2,937

4,084

*

Sovereign and non-Sovereign at the end of 2021.

4.1.1.3 Refinancing risk The AFD Group, including its Proparco subsidiary, does not receive deposits or repayable funds from the public. As its funding model is essentially based on medium and long term market borrowings, liquidity is a priority in terms of the Group’s performance target, which involves keeping the cost of resources under control and minimising the carrying cost (1) .

However, the Group inevitably remains exposed to an exceptional situation that cannot be modelled which could involve the simultaneous emergence of a large number of high-intensity geopolitical crises in regions with significant activity.

(1) The carrying cost of a resource is the difference between the cost of financing and interest from investing the resource.

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2021 UNIVERSAL REGISTRATION DOCUMENT