AFD - Universal Registration Document 2020

1

PRESENTATION OF AFD

Activities of the Agence Française de Développement Group in 2020

1.6.3.1 AFD, foreign States Ongoing operations

1.6.3.2 AFD, French Overseas Departments and Collectivities The year 2020 confirmed the overseas anchoring of AFD, the leading public sector financial partner of the French Overseas Departments and Collectivities. After a decline in 2019, AFD’s activity in the French Overseas Departments and Collectivities stabilised despite the end of the Group’s service on behalf of Bpifrance. Commitment authorisations, which now correspond to activity on its own behalf (loans, guarantees and subsidies), thus amounted to €1.25bn at the end of the year, compared with €0.93bn the previous year (excluding Bpifrance). Activity under a specific mandate - Sogefom, Fogap and Fonds de garantie à l’habitat Mayotte - amounted to €29M, in line with the forecasts for 2020. AFD’s activity in the overseas public sector was very dynamic in 2020, notably in order to meet the needs arising from the COVID crisis. Commitment authorisations (loans and subsidies) thus amounted to €1.1bn, up by 53%. Loans to the public sector overseas, which account for four- fifths of loans on its own account, were maintained to enable them to respond to the crisis. The subsidy budgets have made it possible to increase commitments on operations promoting social ties (PSP B) and those that preserve the environment or contribute to climate change mitigation and adaptation (Green PSP). 1.6.3.3 Proparco, foreign States Proparco’s business was strongly affected by the health crisis and the global economic recession, reaching €2bn (below the forecasts of the strategy for 2020-2022 (target of €3bn)). In this context, activity was refocused on the refinancing of banks and financial institutions, as was the case at all other development financial institutions, while infrastructure projects and corporate financing experienced a marked slowdown.

The activity of loans and guarantees this year reached €7.58bn compared with €8.31bn in 2019, returning to its level of 2018. The year in 2020 was marked by a decline in both sovereign (-€526M) and non-sovereign (-€466M) activity. The decline in non-concessional sovereign lending activity was -€734M but was partially offset by an increase of +€268M in concessional non-sovereign lending activity. Guarantee activity was down sharply to €4M compared to €56M in 2019. This decrease is explained by a tightening of constraints (country risks, sovereign and non-sovereign risks, suspended instructions, IMF programme suspensions, etc.) in some of the countries where the Agency operates. Total authorisations in grants stood at €862M (-€552M) at the end of 2020 after an exceptional year in 2019 marked by the provision of budgetary resources of almost €1.5M. Activity on specific mandates was also down compared to the previous year: approvals amounted to €0.19bn compared with €0.31bn in 2019. The sharp decrease on C2Ds (-62%) is to be compared with the moratoriums put in place as part of the Covid-19 crisis, which interrupted the debt service of the countries that requested to benefit from them. Activities using resources from other sponsors These activities amounted to €603M compared to €706M in 2019. This decline in the mobilisation of delegated funds in 2020 is proportional to the decline in the lending activity.

26

www.afd.fr

2020 UNIVERSAL REGISTRATION DOCUMENT