AFD - Universal Registration Document 2020

CONSOLIDATED FINANCIAL STATEMENTS PREPARED IN ACCORDANCE WITH IFRS 6 Notes to the consolidated financial statements

1.2.1 Loans that do not meet SPPI criteria Loan agreements may have an early repayment clause, the contractual amount of which corresponds to a settlement equal to the cost of unwinding an associated hedge swap. The early repayment flows of these loans are considered to be non-SPPI if they do not purely reflect the effect of changes in the reference interest rates. As a result, the AFD Group has identified a loan portfolio which is measured at fair value through profit and loss. The loans are therefore subjected to a valuation exercise based on the methodology for discounting future flows, with a discount rate specific to each loan in accordance with the accounting rules applied by the Group. 1.2.2 Bonds and other long-term securities Convertible bonds are debt instruments for which the contractual flows do not meet SPPI characteristics due to the nature of the flows exchanged, and are consequently assessed at fair value through profit and loss.

1.2.3 Equity stakes and Ǿ other long-term securities The AFD Group aims to encourage private investment in the developing countries, mainly via its subsidiaries Proparco and Fisea (Investment and Support Fund for Businesses in Africa). It acts primarily through investments in investment funds, as this activity enables it to increase the impact of its financing by supporting a large number of companies doing business in multiple sectors, thus promoting economic growth and the creation of job-creating businesses. The AFD Group also holds direct equity investments with put options for operational purposes. The contractual flows of these financial assets are not SPPI and are therefore measured at fair value through profit and loss.

Investments in unconsolidated structured entities ❙ Breakdown by portfolio activity

Number of equity stakes

Number of equity

Equity investments held in the Investment Funds

31/12/2020 IFRS

stakes 31/12/2019 IFRS

Homogeneous activity portfolios Agribusiness

9 5 7 2

40,392 35,668 58,933

9 5 7 2

68,443 44,791 78,532 65,876 51,794 233,266 479,547 4

Energy

Infrastructure

Mining

91

Multi-sector SME-SMI

13

61,952 40,052 230,197 482,002 949,287

12

Healthcare

6

6

Financial services

22 78

20 72

Multi-sector

NON-CONSOLIDATED STRUCTURED ENTITIES

142

133

1,022,251

❙ Breakdown by operating region

Number of equity stakes

Number of equity stakes

Equity investments held in the Investment Funds

31/12/2020

31/12/2019

Operating region Southern Africa

5

3,035

5

3,927

East Africa West Africa North Africa

11

75,624 30,917 47,971 88,627 703,113 949,287

10

77,456 34,447 90,836 108,511 707,074

6

7

17 17 86

18 16 77

Asia

Multi-region

NON-CONSOLIDATED STRUCTURED ENTITIES

142

133

1,022,251

142

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2020 UNIVERSAL REGISTRATION DOCUMENT