AFD - Universal Registration Document 2020

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

❙ Table 1: Summary of AFD’s limits and alert indicators for large exposures (sovereign + related) Unless otherwise indicated, the percentages apply to large exposure capital (FPGR). Limit system Alert system Regulatory requirements Internal requirements Type of exposure/Outstandings considered Authorised exposure Authorised exposure

Authorised and unauthorised exposure and new approvals

Ceiling: 25% Reporting as “large exposure” when exposure exceeds 10%

23% or 24%* of exposure 23% or 24%* > Ǿ an alert is given to the BoD 21% > Ǿ an alert is given to the Executive Committee

“Large exposure” limit**

* If all exposures are euro-denominated. ** With the fi rst public NS group attached to the central government. ❙ Table 2: Summary of AFD’s limits and alert indicators for non-sovereign activity Limit system

Regulatory requirements

Internal requirements

Alert system

Authorised exposure Authorised exposure Authorised and unauthorised exposure and new approvals

Type of exposure/Outstandings considered

30% of exposure (unweighted)

30% of exposure > Ǿ an alert is given to the BoD 25% of exposure > Ǿ an alert is given to the Executive Committee

Monitoring of non-sovereign activity Regional limits***

Limit by counterparty (and counterparty group)

Ceiling: 25% Reporting as “large exposure” when exposure exceeds 10%

8% for an individual counterparty (risk- weighted exposure) 12% for a counterparty group (risk-weighted exposure)

*** Without the 1 st Ǿ public NS group attached to the central government. Within the Executive Risk Department (DXR), the Risk Monitoring (DSR) Division is responsible for monitoring credit risk and limits for the AFD Group. The “Group Risk Monitoring and Reporting (SRG)” unit, attached to DSR, prepares the database that makes it possible to calculate the major risks declared on a quarterly basis and to monitor the limits set by the Board of Directors. The SRG unit prepares the pre-grant document which is inserted for each loan in the notes to AFD’s decision-making bodies (the latter are systematically approved by DSR), thus ensuring continuous monitoring of the level of major risks and credit limits. Every quarter, a review of the operational limits is presented to the “Counterparties Risk Committee (CORIS)”, of which the Executive Management is a permanent member, and to the Group Risk Committee for the monitoring of major risks.

Large exposure limit The “large exposure” regulatory limit defines the aggregate maximum authorised exposure to third parties or groups of connected third parties as 25% of eligible capital. Based on consolidated capital of €7,910M at 31 Ǿ December Ǿ 2020, the regulatory limit for large exposures is €1,977M. The default internal limit is 23% (€1,819M). If all exposures are euro- denominated, the internal limit increases to 24% (€1,898M). Large exposures reported to the regulator correspond to authorised exposures exceeding 10% of capital. The list at 31 Ǿ December Ǿ 2020 includes exposures on (i) Ǿ 16 central governments (with related public entities, where applicable) and (ii) Ǿ three banks based in France.

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2020 UNIVERSAL REGISTRATION DOCUMENT