I n v e s t i n g i n a S u s t a i n a b l e F u t u r e

Proparco - Introduction

Investing in a Sustainable FutureAugust 2015

P R O PA R C O AT A G L A N C E

Key Figures 2014

€4bn in PROPARCO’s

portfolio 2014

385 clients

€1,100m of

commitments 2014

73countries

200 staff members

Created in 1977, PROPARCO is a development finance institution dedicated to

financing the private sector.

• Subsidiary of the Agence Française de

Développement (AFD).

• A development mission combined with private

sector profitability.

• A full range of customized financial tools:

equity, quasi-equity, loans and guarantees.

• An international presence on 4 continents and

more than 70 countries.

• Environmental and social requirements.

• A catalyst action, attracting and mobilizing

additional public and private sector funding for

its clients’ projects.

13 Regional Offices

S H A R E H O L D E R S

30 private and public sector shareholders committed to development.

63%22%

12%

2% 1%63% Agence Française de Développement (AFD)

22% French financial organizationsBNP Paribas, BPCE IOM, Bpifrance, CDC Entreprises ELAN PME,

Coface, Crédit Agricole SA, Société Générale

12% International financial organizationsAga Khan Fund for Economic Development (AKFED), Banque Marocaine

du Commerce Extérieur (BMCE), Bank of Africa Group (BOA Group SA),

Banque Ouest-Africaine de développement (BOAD), Corporación Andina

de Fomento (CAF), Development Bank of Southern Africa (DBSA), DEG

2% CorporatesBolloré Africa Logistics, Groupe Bouygues, GDF Suez, Saur International,

SIPH, Socotec International, Somdiaa

1% Funds and ethical foundationsXavier de BAYSER, Amundi AFD Avenirs Durables, Natixis Solidaire

I N T E R N AT I O N A L P R E S E N C E

S E C TO R S

MANDATE : GREEN AND INCLUSIVE GROWTH

BANKS AND FINANCIAL MARKETS

• Banking,

• Insurance

• Reinsurance

• Leasing

• Microfinance

CORPORATE

INFRASTRUCTURE• Renewable energy and energy efficiency

• Telecommunication

• Water and sanitation

• Transportation and Mining

Portfolio as of 31/12/2014

• Healthcare

• Education

• Agribusiness

• Sustainable Tourism

• Industry & Construction (limited geography)

F I N A N C I N G TO O L S

• Investment from 10 M€ to 100 M€

• Maturity from 5 to 20 years

• Possibility to offer local currency

• Floating or fixed interest rate

SENIOR LOANS EQUITY INVESTMENT

• 2 M€ to 20 M€

• Minority stakes (< 20-30%)

• Clear exit strategy after 5-10 years

QUASI-EQUITY

• Preferred shares

• Convertible debt

• Subordinated debt

• Flexible structure

GUARANTEES

• Bond guarantees

• Interbank loan guarantees

• To facilitate financing in local

currency

Long-term financing in various forms

P R O PA R C O ’ S A D D E D VA L U E

• Sectorial expertise:

• In-depth knowledge and experience of Africa:

• Role as promoter of development:

• A network of partners:

• Environmental and social approach:

• Multi-sector expertise:

• Synergies between PROPARCO and AFD :

• High standard due diligence procedure :

OPERATIONAL PRINCIPALS AND KEY STRENGTH

I N T E R N A L P R O C E S S

Letter of

Interest

Firm loan

proposal

Screening

Committee

(weekly)

Project

Committee

(weekly)

Identification

Process

Investment

Committee

(monthly)

Signing &

Disbursement

Due

Diligence

Contract

Negotiation Monitoring

Internal

decision

process

Documentation

K E Y C O N S I D E R AT I O N S

• Company’s businesses

• Shareholding structure

• Sponsor’s background

• Management’s experience and track record

• Corporate governance

• Understanding of market, market studies

• Sound business model, financial analysis

• Environmental and social standards

• All aspects of project risks and mitigating factors

WHAT WE LOOK FOR WHEN EVALUATING PROJECTS

E N E R G Y P R O J E C T S I N A S I A

• Sindicatum, 2013, Mezzanine USD15m

• Armstrong SEA Clean Energy Fund, 2013, USD13m

Renewable Energy Investment Fund

• PTES, Indonesia, 2012, Loan USD27,5 m

• Phu My 2.2, Vietnam, 2002, 715 MW Combined cycle plant, Loan USD 40m , cofinance with JBIC, ADB, commercial banks, tenor 20 years

Combined cycle gas power plant

• Theun Hinboun, Laos, 2009, Loan USD 40m

• Zhongda, China, 2006, Loan EUR 7,8m

• Nam Theun II hydro, Laos, 2005, Loan USD27m

Hydro Power Plant

• TBEC, Thailand, 2005, Guarantee EUR6m

Biomass

I n v e s t i n g i n a S u s t a i n a b l e F u t u r e

Thank You