AFD - Universal Registration Document 2020

PRESENTATION OF AFD AFD operations

Mandate-speci fi c operations Global Budget Support (GBS) on the basis of the Treasury’s resources (Programme 110) granted in the form of grants, primarily in the least developed countries (LDCs). 1.3.2.2 IN FRENCH OVERSEAS DEPARTMENTS AND COLLECTIVITIES Since 2019, all financial tools available to AFD in respect of the Ministry for French Overseas Departments and Collectivities’ 123 budget programme (grants and subsidised loans) are part of the Trajectory 5.0 carried by the Ministry. This strategy is based on 5 priorities: “0 carbon”, “0 waste”, “0 pollutants”, “0 exclusion” and “0 vulnerability”. AFD’s overseas activities are mainly carried out via loans, grants and guarantees. They aim to contribute to the development of overseas territories and the integration of the overseas economies into their regional environment. P Loans P Financing public-sector investment in a spirit of partnership, especially thanks to the support given to local authorities for defining and implementing their development strategies. This activity takes the form of subsidised loans to the public sector (local authorities, EPCIs, public institutions, public utility associations), or in the form of non-subsidised loans. AFD is today the leading financial partner for the overseas public sector covering almost 2/3 of its annual loan requirements (excluding social housing) and half of its debt (AFD debt outstanding amounts to €6bn). P In addition, AFD can grant short-term loans to public authorities, as pre-financing of European and State subsidies, as well as the FCTVA. P Financing of the private sector through direct lending to companies at market rates, in a spirit of complementarity with the banking sector, and consistent with the climate commitments of the Group and Trajectory 5.0. P AFD also supports the development of microcredit institutions in the French Overseas Departments and Collectivities by contributing to their refinancing. P Subventions P In addition to its loan activity, AFD implements consulting and support actions for the overseas public sector. The Agency thus supports the reinforcement of public players’ abilities to complete their investment operations. In 2020, these actions were mainly based on the French Overseas Departments and Collectivities Fund (FOM), created at the end of 2019 by the French Ministry of Overseas Departments and Collectivities. Focused on the priorities of the French overseas territories, the fund was allocated a budget of €17.5M in 2020: on the one hand, €15M to finance project management and engineering assistance actions; and, on the other, €2.5M for the funding of research programmes. The action of the FOM will continue in 2021 and 2022, with a budget of €15M per year.

P The French Ministry of Overseas Departments and Collectivities has also delegated two grant budgets to AFD: Support for Project Management (AMO) of the French Overseas Departments and Collectivities Green Fund (€2M) for the initiation of environmental projects (climate, biodiversity) and AMO Structuring Investments (€2M) for the initiation of projects in priority sectors for the regions (water, sanitation, employment, early childhood in French Guiana, etc.). P Guarantees P AFD also carries out a significant medium to long- term bank loan guarantee activity to small and medium businesses in the French Pacific Collectivities through Sogefom, in which it is the majority shareholder. P It also manages housing guarantee funds in the French overseas departments on behalf of third parties. As of 01/07/2020, this activity has been taken over by Bpifrance (01/01/2021 for the department of Mayotte). AFD was entrusted with the management of the Guarantee Fund for Agriculture, Fisheries, Aquaculture and Forestry (FOGAP) created in 2010 by the French State. P The Fonds de Garantie de Saint-Pierre-et-Miquelon (FGSPM) and the Fonds de Garantie de Mayotte, for the General Economy section (FGM-EG), are run on a run-off basis due to the deployment of Bpifrance “guaranteed” products in these regions. This management is carried out by AFD. P Management or representation mandates in the French Overseas Departments and Collectivities P AFD is in charge of the extinction management of Crédit foncier de France’s operations in the French Overseas Departments and Collectivities. P AFD also acted to promote the development of social housing in the French Overseas Departments through equity investments in six real estate companies held on its own behalf and/or on behalf of the State. All of these equity investments were sold to CDC Habitat at the end of 2019. AFD has a stake on its own behalf in the share capital of the Société Immobilière de Nouvelle Calédonie (SIC). AFD ensures that the projects it finances integrate the development issues of the future. Through its research and development, AFD helps to construct the future sustainable development models and orientations. AFD relies on intellectual production through modelling, studies and assessments, the management of A network of experts and the publication of its research work to increase the added value of its operations. Through its experimentation processes, it also promotes research into new practices. All these activities are part of AFD’s strategic and operational orientations. They are carried out in partnership with French and international research centres, with a focus on the use and promotion of expertise of Southern countries. 1.3.3 Other AFD activities 1.3.3.1 Intellectual production

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2020 UNIVERSAL REGISTRATION DOCUMENT