SOLUTIONS FOR FINANCIAL INSTITUTIONS

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Ann Norman
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1 SOLUTIONS FOR INSTITUTIONS Business in common

SDGs OUR MISSION Strengthening the private sector s contribution to the achievement of the Sustainable Development Goals (SDGs) + Stimulating growth and job creation + Developing and deepening

2 SDGs OUR MISSION Strengthening the private sector s contribution to the achievement of the Sustainable Development Goals (SDGs) + Stimulating growth and job creation + Developing and deepening financial markets + Promoting responsible and sustainable economic models OUR PRINCIPLES Proparco, a patient partner that catalyses private investment with strong development impacts OUR VALUE PROPOSITION + An extensive network of clients and partners in multiple sectors and geographies + Ability to organise complex projects + An international network + Environmental and social approach: assisting our clients in improving their E&S performance + Cofinancing arrangements with partner institutions (DEG, FMO, IFC, etc.) + High standards of due diligence + Synergies with AFD: sector expertise, presence in 70 countries, contact with local authorities and main donors, co-financing 2, A INSTITUTION SERVING THE PRIVATE SECTOR AND SUSTAINABLE DEVELOPMENT OUR TOOLS + Loans + Equity and quasi-equity investments + Investment funds + Guarantees + Technical assistance OUR AREAS OF EXPERTISE + Agriculture and agribusiness + Access to finance (banks, microfinance and financial inclusion) + Social sectors (health and education) + Climate smart infrastructure (energy, transport, water and sanitation) OUR STRATEGY FOR : GROWTH WITH IMPACTS OUR OBJECTIVES FOR : 2 bn per year COMMITMENTS 2015: 1 bn per year 2x A NORTH / SOUTH INVESTMENT COMMUNITY A strong capital base of 693 M and commited shareholders In addition to the Agence Française de Développement, its majority shareholder, the shareholder base spans a broad range of public and private institutions from France, Europe, Latin America and Africa. OUR IMPACT IN % AFD 21.7% French financial institutions 11.8% International financial institutions 1.7% Corporates CLIENTS IMPACTS 3x 0.6% Funds & Ethical Foundations JOBS 1.7 M direct and indirect jobs supported each year 12 M people given access to essential goods and services per year CAPACITY BUILDING for businesses 180 companies assisted by Proparco on environmental, social and governance issues CLIMATE 5 M teq CO2 avoided per year SERVICES education, healthcare, energy infrastructures INNOVATION 45 innovative projects targeting vulnerable populations Proparco benefits from the financial robustness of AFD, a shareholder with an excellent credit rating AFD Rated AA (S&P, Fitch) Extensive international network of 72 agencies and representative offices 9.4 Bn of new commitments in 2016 #BusinessInCommon 3

3 OUR PRESENCE WORLDWIDE 11 REGIONAL OFFICES COVERING OVER 80 COUNTRIES 1.3 m NEW COMMITMENTS AT DECEMBER 31 ST, CLIENTS INCLUDING 100+ SUPPORTED for their environmental and social performance since SHAREHOLDERS OFFICERS Figures as of 2016 SANTO DOMINGO Dominican Republic & Haiti PARIS Headquarters 4 ISTANBUL Turkey and Middle East, Central Asia, Caucasus, Southeast Europe 3 BEIJING China CASABLANCA North Africa 10 1 MEXICO Central America and the Carribean 5 ABIDJAN West Africa 6 LAGOS Nigeria NEW DELHI South Asia 9 NAIROBI East Africa 11 BANGKOK North and Southeast Asia 7 8 Our offices and the regions they cover Branch offices 2 SAO PAULO South America DOUALA Central Africa JOHANNESBURG Southern Africa and Indian Ocean 4 #BusinessInCommon 5

SOLUTIONS FOR YOUR BUSINESS OUR OBJECTIVES FOR INSTITUTIONS & CAPITAL MARKETS Strong financial institutions and capital markets play a key role for a sustainable and inclusive economy INSTITUTIONS &

Proparco supports banks, MFIs, NBFIs, leasing and insurance companies, and encourages the development of capital markets.

Sustainable tourism - Construction - Industry OUTSTANDING COMMITMENTS BY SECTOR Total 4,810m Financial institutions and markets 46% ( 2,199m) Energy infrastructure Miscellaneous and multi-sector

4 SOLUTIONS FOR YOUR BUSINESS OUR OBJECTIVES FOR INSTITUTIONS & CAPITAL MARKETS Strong financial institutions and capital markets play a key role for a sustainable and inclusive economy INSTITUTIONS & MARKETS Proparco s dealings with the financial sector account for almost 50% of its balance sheet. Proparco supports banks, MFIs, NBFIs, leasing and insurance companies, and encourages the development of capital markets. CORPORATE is involved in a wide variety of sectors such as: - Education - Health: hospitals, medical test laboratories, pharmaceutical companies - Agribusiness: all activities along the value chain - Sustainable tourism - Construction - Industry OUTSTANDING COMMITMENTS BY SECTOR Total 4,810m Financial institutions and markets 46% ( 2,199m) Energy infrastructure Miscellaneous and multi-sector Agriculture and agribusiness Healthcare and education Telecoms Industry Microfinance 24% 14% 7% 6% 2% 2% 1% ( 1,148m) ( 651m) ( 323m) ( 290m) ( 83m) ( 81m) ( 35m) INFRASTRUCTURE supports the financing of infrastructure construction, extension and renovation in multiple sectors: - Energy: renewable and efficiency energy - Telecommunications - Transport: urban transport, rail, ports - Water and sanitation % OF TOTAL at Dec. 31, 2016 Our priorities FINANCING THE SUSTAINABLE GROWTH OF THE ECONOMY providing resources for financial institutions to finance sustainable economic growth: SMEs, energy, social sectors, agribusinesses STRENGTHENING CLIENT EXPERTISE on critical matters through capacity building: business development, E&S management, AML compliance PROMOTING ACCESS TO FINANCE by strengthening and diversifying the offer of financial services: microfinance, leasing, insurance, capital markets Partnering with BANKS, INSURANCE COMPANIES, MICROFINANCE INSTITUTIONS, NON BANKING INSTITUTIONS 160 partner financial institutions 30 new transactions per year 6 #BusinessInCommon 7

5 OUR PRODUCT OFFER SOLUTIONS Loans 10 M to 100 M Use of funds: SME, transitions (energy, agribusiness, social sectors) Currency:, $, local currency Maturity: up to 12 years Pricing: fixed or floating Compliance with AML/FT and E&S best practices Equity & quasi equity 5 M to 25 M 5% to 20% shareholding 5 to 7-year investment horizon Minimum 50% cash-in Clear exit strategy Minority rights protection Quasi-equity: tier 2 capital, convertible bonds and other hybrid instruments Guarantees & tailor-made solutions Trade finance for Africa Risk sharing with banks (SMEs or microfinance institutions) Risk sharing with investors (e.g. guaranteed mutual fund) AND EXTRA- SOLUTIONS Technical assistance Support in areas such as environmental & social performance or the development of new business lines (SMEs, green finance) Contribution up to 50% of the budget Extensive network of external experts and consultants TRANSACTION PROCESS CLEARANCE IN PRINCIPLE PREPARATION OF DUE DILIGENCE ON-SITE DUE DILIGENCE DRAFTING OF PROJECT MEMO INVESTMENT DECISION DRAFTING OF LEGAL DOCUMENTATION SIGNING AND CLOSING ONGOING RELATIONSHIP 4 TO 6 WEEKS 8 #BusinessInCommon 9

6 Financial Institutions IN LATIN AMERICA a key strategic priority for HIGH IMPACT PROJECTS INCLUSION STRENGTHENING A FEDERATION OF COOPERATIVES IN EL SALVADOR FEDECRÉDITO USD 15 million syndicated debt facility 7 years (1 y grace) 2016 SANTO-DOMINGO Dominican Republic & Haïti MEXICO Central America & the Caribbean TIER 2 REINFORCING THE CAPITAL BASE OF BANPRO IN NICARAGUA RENEWABLE ENERGY BOOSTING INVESTMENTS IN PANAMA Our 2 offices Branch office SAO PAULO South America BANPRO Tier 2 debt USD 10 million 10 years (5 y grace) 2016 BANCO ALIADO Credit facility USD 25 million 10 years (2 y grace) FI partners in Latin America IN 15 COUNTRIES 600 M outstanding commitments SMEs INCREASING ACCESS TO FINANCE IN ECUADOR PICHINCHA Subordinated debt USD 10 million 7 years (5y grace) 2014 AGRICULTURE FACILITATING ACCESS TO FUNDING FOR SMALL-SCALE PRODUCERS IN LATIN AMERICA LAAD Credit facility USD 20 million 7 years (2 y grace) #BusinessInCommon 11

7 CONTACTS Regional Offices in Latin America MEXICO Torre Omega Campos Eliseos n México D.F. PAUL CENTENO-LAPPAS Head of Regional Office for Central America and the Caribbean centeno-lappasp@proparco.fr ANGÉLICA SANTIAGO santiagoa@proparco.fr VALENTINE ARINO arinov@proparco.fr 12 SÃO PAULO Edifício Çiragan Office Alameda Ministro Rocha de Azevedo 38 - CJ SP São Paulo BENJAMIN GUERINI Head of regional Office for South America guerinib@proparco.fr MATHIEU LEBEGUE Deputy-Head lebeguem@proparco.fr EDUARDO DIAS AGUILAR aguilare@proparco.fr GUILHERME MEIRA meirag@proparco.fr JEAN-GUILLAUME BULL bulljg@proparco.fr a subsidiary of the Agence Française de Développement (AFD) dedicated to the private sector has been supporting sustainable development for 40 years. Head Office PARIS 151 Rue Saint-Honoré Paris, France GUILLAUME BARBEROUSSE Head of Financial Institutions Group barberousseg@proparco.fr GONZAGUE MONREAL Deputy-head, Latam/Asia monrealg@proparco.fr EMMANUEL HAYE Deputy-head, Africa/ Middle-East hayee@proparco.fr PAULINA GONZALEZ, Latin America gonzalezp@proparco.fr Photos page 7: microfinance samjamphoto - Francesco Zizola / NOOR Cover photo: J.J. Estrada - I.Ezzerelli - Oriane Zerah - Meridiam Conception / redaction: Proparco - November 2017

International Finance Corporation Olaf Schmidt Global Head - Tourism, Retail & Property Manufacturing, Agribusiness & Services Department

International Finance Corporation Olaf Schmidt Global Head - Tourism, Retail & Property Manufacturing, Agribusiness & Services Department Structured Finance Conference November 15, 2012 IFC is a Member