AFD - Universal Registration Document 2020

RISK MANAGEMENT Basel III Pillar 3

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%; P €695M in additional shareholders ‘equity (RCS).

The breakdown of regulatory capital at 31 Ǿ December 2020 was as follows: P €6,375M in category 1 base capital, comprising hard, non- refundable capital (mainly provisions and reserves); P €840M in additional category 1 capital in the form of undated subordinated bonds subscribed by the French State. The securities commitments made by AFD (which are obligatory under French law), in terms of principle and interest, are

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

31/12/20

In thousands of euros

Equity

2,808 2,634

Consolidated reserves

Earnings

-55

Projected distribution (20% company income statement)

0

FRBG

460 144

Equity method diff.

Unrealised capital gains and losses

38

4

Minority interests Intangible assets Prudent valuation

176

-46

-4

CET1 capital

6,155

CET1 deductions

0

Impairments

220

CET1 capital after deductions T1 subordinated securities

6,375

840

T1 capital

7,215

T1 deductions

0

T1 capital after deductions

7,215

RCS

695

Subordinated loans, Art. Ǿ 4d Subordinated loans, Art. Ǿ 4c

0 0

T2 capital

695

T2 deductions

0

T2 capital after deductions

695

TOTAL CONSOLIDATED CAPITAL

7,910

❙ Deductions and prudential restatements under CRR/CRD4

31/12/2020

31/12/2019

In thousands of euros

Cut back of non-eligible minority interests

20.7 -4.4 16.4

12.6 -4.6

Prudent Value Adjustment

TOTAL 8.0 Articles Ǿ 81 and 479 of the CRR provide for the deduction from capital of the minority interests in entities not governed by the CRR and CRDIV, or equivalent requirements, with a transition period.

93

2020 UNIVERSAL REGISTRATION DOCUMENT