AFD // 2021 Universal Registration Document

RISK MANAGEMENT Basel III Pillar 3

under French law), in terms of principle and interest, are direct, unconditional, lowest rank subordinated commitments for an indefinite term without an AFD guarantee. Save for the occurrence of a regulatory event, as provided for in the agreement with the State (point of non-viability, i.e . non compliance with the minimum CET1 ratio as provided by law at a specific time), the securities will pay an annual interest of 0.25%.

The breakdown of regulatory capital at 31 ɸ December 2021 was as follows: P €7,970M in category ɸ 1 base capital, comprising hard, non refundable capital (mainly provisions and reserves); P €840M in additional category ɸ 1 capital in the form of undated subordinated bonds subscribed by the French State. The securities commitments made by AFD (which are obligatory

When itemised, the capital breaks down as follows: ❙ Consolidated risk capital

31/12/2021

In millions of euros

Equity

4,228 2,684

Consolidated reserves

FRBG

460 139

Equity method diff.

Unrealised capital gains and losses

69

Non-controlling interests

216

Intangible assets Prudent valuation

-64

4

-4

CET1 capital

7,727

CET1 deductions

0

Phase-In

243

CET1 capital after deductions T1 subordinated securities

7,970

840

T1 CAPITAL T1 deductions

8,810

0

T1 capital after deductions

8,810

RCS

0 0 0 0 0 0

Subordinated loans Art ɸ 4d Subordinated loans Art ɸ 4c Additional regulatory capital

T2 deductions

T2 capital after deductions

TOTAL CONSOLIDATED CAPITAL

8,810

❙ Deductions and prudential restatements under CRR/CRD4

31/12/2021

31/12/2020

In millions of euros

Cut back of non-eligible non-controlling interests

34.8

20.7

Prudent Value Adjustment

-4.2

-4.4

TOTAL

30.6

16.4

Articles ɸ 81 and ɸ 479 of the CRR provide for the deduction from capital of the non-controlling interests in entities not governed by the CRR and CRDIV, or equivalent requirements, with a transition period.

97

2021 UNIVERSAL REGISTRATION DOCUMENT