AFD // 2021 Universal Registration Document

RISK MANAGEMENT 4 Basel III Pillar 3

4.2 Basel III Pillar 3

4.2.1 General principles The objective of Pillar ɸ 3 of the Basel ɸ III framework is to improve financial transparency by publishing quantitative and qualitative disclosures of different types of risk, risk evaluation procedures and the capital adequacy of companies. In terms of challenges, for each institution, they involve: P aligning data with the new international accounting standards (IFRS) on financial communication; P explaining their internal rating methodology and their risk assessment process to the market. Article ɸ 7 of the Decree of 23 ɸ December 2013 on the prudential regime for financing companies stipulates that they are required to comply with the provisions applicable to credit institutions pursuant to Regulation (EU) No. ɸ 575/2013 of the European Parliament unless otherwise exempted by this decree. These exemptions relate to: P the leverage ratio; P the liquidity management ratios (LCR and NSFR); P the BRRD directive and its resulting MREL on the resolution of banking institutions in the EU. In 2021, theAFDGroup received twonew regulatory qualifications listed by the ACPR: P parent company of financing companies, due to its two financing company subsidiaries, Proparco and Sogefom; 4.2.2 Scope of application 4.2.2.1 AFD’s prudential regime

P investment holding company, due to its subsidiary Proparco being formally recognised as an investment company. 4.2.2.2 Corporate name of the Group’s parent company to which the system applies Agence Française de Développement (AFD). Detailed information about AFD Group’s corporate purpose is There is no difference with regard to consolidation principles between accounting data and prudential data. The consolidation scope and methods are defined in Paragraph ɸ 6 “Consolidated financial statements prepared in accordance with IFRS adopted by the European Union”; Note ɸ 6.2.3.1 “Consolidation scope and methods”. Moreover, there are no restrictions on transferring funds or regulatory capital within the Group. 4.2.3 Equity 4.2.3.1 Capital structure The AFD Group’s capital at 31 ɸ December 2021 was €8,810M compared with €7,910M at the end of 2020, i.e. up €900M. CET1 capital stood at €7,970M, compared with €6,375M at the end of 2020. Total Tier ɸ 1 increased from €7,215M to €8,810M. presented in Paragraph ɸ 1.1 ‘‘General information”. 4.2.2.3 Consolidation scope and methods

❙ Capital structure of the AFD Group at 31 December 2021

In millions of euros CET1 capital before deductions

7,727

CET1 deductions

0

Phase In

243

CET1 capital after deductions T1 subordinated securities T1 capital before deductions

7,970

840

8,810

T1 deductions

0

T1 capital after deductions T2 capital before deductions

8,810

0 0 0

T2 deductions

T2 capital after deductions

TOTAL CAPITAL

8,810

96

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2021 UNIVERSAL REGISTRATION DOCUMENT