PROPARCO
in the Maghreb region and Middle-East
CH HALLLENGES IN THE MEDITERRANEAN Southern and Eastern Mediterranean countries have
creation. It creates precious resources that allow
experienced strong growth in recent years – around
States to play their role as regulators and wealth
4% annually – which has led to a reduction in cer-
distributors. It helps provide certain essential
tain macroeconomic imbalances (particularly infla-
services and plays a key role in meeting environ-
tion levels, debt, budget balance). Yet this growth
mental and social challenges.
is still not enough to bridge the employment defi-
The Mediterranean is a top priority for PROPARCO.
cit: almost a hundred million jobs will need to be
The company is dedicated to financing the private
created over the next twenty years in order to face
sector and catalyzes private investment. With 25%
the sharp rise in an extremely young population.
of its business conducted in the region, PROPARCO
These countries are also geographically and culturally very close to Europe, yet this advantage is underexploited: the Euro-Mediterranean area suf-
PRO OM MOTE BALANCED AND SUSTAINABLE REG GIO ONAL DEVELOPMENT
BOOS ST GROWTH AND JOB CREATION
is the most “Mediterranean” European Develop-
helps raise power generation capacities, reduce
FOR GROWTH
external energy dependence and specifically focuses
RAISING LOCAL FINANCING CAPACITIES
The main causes of the employment deficit that
One of the structural challenges facing the region is
the Mediterranean region needs to address are the
the need to structure and sustainably develop the
Sharp urban population growth leads to huge
fragility of the local SME fabric and the need for
banking sector. r
needs in terms of land use development, as well as
businesses to upgrade.
PROPARCO supports banking activities in order
access to infrastructure and public services (water
PROPARCO supports SMEs and provides an alter-
to raise local financing capacities and offer longer
and sanitation, energy, transport).
native to them becoming overindebted by making
maturities. It achieves this by offering a wide range
PROPARCO, by offering long-term resources, par-
equity investments via two main vehicles:
of lines of credit which are mainly earmarked for
ticipates in financing major industrial and infras-
direct equity investments in businesses;
major banks and their subsidiaries. PROPARCO
tructure projects in the region that involve specific
also helps shore up the equity of financial esta-
financial structures (PPPs, private electricity pro-
blishments, thus allowing them to maintain good
ducers, concessions...). Financing these projects
■
ment Finance Institution.
FINANCING CORE INFRASTRUCTURE
BUILDING BUSINESS COMPETITIVENESS
■
equity investments in local and regional funds.
on promoting renewable energies.
PROPARCO has traditionally focused on the
fers from a great asymmetry in terms of economic
Funds are selected in terms of their capacity to
solvency ratios and supporting their international
Maghreb region and Turkey, but has now exten-
led by major corporates also has a considerable
development and a low level of regional integra-
assist businesses during their development phase
expansion.
ded its activity to the Middle East. Today, it relies
impact on the development of the SME fabric (for
tion. How to adapt to European market require-
by providing real support for their governance in
on three regional offices located in Cairo, Casablan-
ments constitutes a major challenge for Southern
addition to financing. PROPARCO gives priority to
ca and Tunis which cover an extensive area (Algeria,
and Eastern Mediterranean economies.
experienced local teams and makes every effort to
Egypt, Iraq, Jordan, Lebanon, Morocco, Mauritania,
bring in European investors. The leverage is two-
INSTITUTIONS
The main development challenge in this region is
the Palestinian Autonomous Territories, Syria, Tuni-
fold since it makes it possible to reach a greater
sia, Turkey and Yemen).
PROPARCO promotes the creation and develop -
consequently to boost growth in order to create
number of local businesses and also to train teams
ment of very small enterprises. By supporting
jobs and build convergence among Mediterranean
This field presence allows PROPARCO to work
in the highest business management standards.
economies. The Union for the Mediterranean – an
closely with its clients and tailor its business to
microfinance institutions (MFIs), it helps develop
PROPARCO is one of the pioneers in private equity
initiative launched by France in 2008 – aims to pro-
local needs.
the economic fabric and combat poverty. It pro-
investment in the region and has made a major
vides financing via bank guarantees and subordi-
contribution to the development of this industry
nated financing. It also ensures MFIs are oriented
over the past fifteen years. The launch of Averroes II
towards greater professionalization in terms of
PROPARCO pays particular attention to promoting
The private sector has the capacity to be a key
underscores PROPARCO’s will to continue to be a
both financial management and integrating envi-
development that is both productive and sustaina-
player. It is the main engine of growth and job
reference player in the region.
ronmental and social “best practices”.
ble. For instance, in the energy sector PROPARCO
vide solutions to these challenges via major joint projects between the two Mediterranean shores.
PROMOTING SUSTAINABLE GROWTH The Mediterranean region at the same time faces an environmental challenge that gives increasing cause for concern. Pressure on natural resources is largely exacerbated by demographic expansion and climate change.
LEBANON Supporting banks’ international development strategies
of commitments
25 % of business Tunis Casablanca Cairo
PROPARCO, CDC Climat and AFD, alongside other public finance institutions, launched a Mediterranean carbon fund in May 2010. This initiative should be operational by 2011 and aims to support the deployment of environmental projects in Mediterranean countries.
TUNISIA Developing air transport Tunisia’s airport capacities are heavily saturated as a result of the increasing number of tourists. The authorities came up with the solution of building a new airport in Enfidha. The new airport, operated by TAV, has been operational since 2010. It has a capacity to handle 7 million passengers a year. PROPARCO’s € 30 M participation in the project aims to support the tourism sector, create employment (over 7,000 jobs linked to the project) and is in line with its strategy to make sizeable investments in Tunisia. © Salah Bettaieb
© Pascal Fellous
€ 603M
In the framework of the Union for Mediterranean,
subcontracted activities).
HELPING TO FINANCE MICROFINANCE
2007 - 2009
regional offices
finance exemplary environmental projects.
instance, in the framework of construction sites or
KEY FIGURES
3
It also offers banks lines of credit earmarked to
Lebanon has now become a regional financial center and its banks, which benefit from depositor confidence and a sharply growing market, are increasingly seeking to develop at the international level (particularly in the
JORDAN Financing water supply in the City of Amman Mediterranean region and Africa). PROPARCO is supporting this expansion – a factor for regional integration – by offering them long-term resources. For instance, in 2009 PROPARCO took a $30M equity stake in Byblos Bank. In the same year, it also allocated a $15M subordinated loan to Fransabank.
Jordan is one of the ten cities to be the most affected by a water shortage. Amman’s inhabitants only have access to drinking water twice a week. In order to raise the volume of available water in the capital, PROPARCO has participated in financing a project to convey water from © Diwaco
Disi – 320 km away – to Amman. The drinking water supply system built by the project will make it possible to withdraw 100 million m3 of water over a 50-year period. 2.5 million people in Amman will consequently have access to drinking water.
CH HALLLENGES IN THE MEDITERRANEAN Southern and Eastern Mediterranean countries have
creation. It creates precious resources that allow
experienced strong growth in recent years – around
States to play their role as regulators and wealth
4% annually – which has led to a reduction in cer-
distributors. It helps provide certain essential
tain macroeconomic imbalances (particularly infla-
services and plays a key role in meeting environ-
tion levels, debt, budget balance). Yet this growth
mental and social challenges.
is still not enough to bridge the employment defi-
The Mediterranean is a top priority for PROPARCO.
cit: almost a hundred million jobs will need to be
The company is dedicated to financing the private
created over the next twenty years in order to face
sector and catalyzes private investment. With 25%
the sharp rise in an extremely young population.
of its business conducted in the region, PROPARCO
These countries are also geographically and culturally very close to Europe, yet this advantage is underexploited: the Euro-Mediterranean area suf-
PRO OM MOTE BALANCED AND SUSTAINABLE REG GIO ONAL DEVELOPMENT
BOOS ST GROWTH AND JOB CREATION
is the most “Mediterranean” European Develop-
helps raise power generation capacities, reduce
FOR GROWTH
external energy dependence and specifically focuses
RAISING LOCAL FINANCING CAPACITIES
The main causes of the employment deficit that
One of the structural challenges facing the region is
the Mediterranean region needs to address are the
the need to structure and sustainably develop the
Sharp urban population growth leads to huge
fragility of the local SME fabric and the need for
banking sector. r
needs in terms of land use development, as well as
businesses to upgrade.
PROPARCO supports banking activities in order
access to infrastructure and public services (water
PROPARCO supports SMEs and provides an alter-
to raise local financing capacities and offer longer
and sanitation, energy, transport).
native to them becoming overindebted by making
maturities. It achieves this by offering a wide range
PROPARCO, by offering long-term resources, par-
equity investments via two main vehicles:
of lines of credit which are mainly earmarked for
ticipates in financing major industrial and infras-
direct equity investments in businesses;
major banks and their subsidiaries. PROPARCO
tructure projects in the region that involve specific
also helps shore up the equity of financial esta-
financial structures (PPPs, private electricity pro-
blishments, thus allowing them to maintain good
ducers, concessions...). Financing these projects
■
ment Finance Institution.
FINANCING CORE INFRASTRUCTURE
BUILDING BUSINESS COMPETITIVENESS
■
equity investments in local and regional funds.
on promoting renewable energies.
PROPARCO has traditionally focused on the
fers from a great asymmetry in terms of economic
Funds are selected in terms of their capacity to
solvency ratios and supporting their international
Maghreb region and Turkey, but has now exten-
led by major corporates also has a considerable
development and a low level of regional integra-
assist businesses during their development phase
expansion.
ded its activity to the Middle East. Today, it relies
impact on the development of the SME fabric (for
tion. How to adapt to European market require-
by providing real support for their governance in
on three regional offices located in Cairo, Casablan-
ments constitutes a major challenge for Southern
addition to financing. PROPARCO gives priority to
ca and Tunis which cover an extensive area (Algeria,
and Eastern Mediterranean economies.
experienced local teams and makes every effort to
Egypt, Iraq, Jordan, Lebanon, Morocco, Mauritania,
bring in European investors. The leverage is two-
INSTITUTIONS
The main development challenge in this region is
the Palestinian Autonomous Territories, Syria, Tuni-
fold since it makes it possible to reach a greater
sia, Turkey and Yemen).
PROPARCO promotes the creation and develop -
consequently to boost growth in order to create
number of local businesses and also to train teams
ment of very small enterprises. By supporting
jobs and build convergence among Mediterranean
This field presence allows PROPARCO to work
in the highest business management standards.
economies. The Union for the Mediterranean – an
closely with its clients and tailor its business to
microfinance institutions (MFIs), it helps develop
PROPARCO is one of the pioneers in private equity
initiative launched by France in 2008 – aims to pro-
local needs.
the economic fabric and combat poverty. It pro-
investment in the region and has made a major
vides financing via bank guarantees and subordi-
contribution to the development of this industry
nated financing. It also ensures MFIs are oriented
over the past fifteen years. The launch of Averroes II
towards greater professionalization in terms of
PROPARCO pays particular attention to promoting
The private sector has the capacity to be a key
underscores PROPARCO’s will to continue to be a
both financial management and integrating envi-
development that is both productive and sustaina-
player. It is the main engine of growth and job
reference player in the region.
ronmental and social “best practices”.
ble. For instance, in the energy sector PROPARCO
vide solutions to these challenges via major joint projects between the two Mediterranean shores.
PROMOTING SUSTAINABLE GROWTH The Mediterranean region at the same time faces an environmental challenge that gives increasing cause for concern. Pressure on natural resources is largely exacerbated by demographic expansion and climate change.
LEBANON Supporting banks’ international development strategies
of commitments
25 % of business Tunis Casablanca Cairo
PROPARCO, CDC Climat and AFD, alongside other public finance institutions, launched a Mediterranean carbon fund in May 2010. This initiative should be operational by 2011 and aims to support the deployment of environmental projects in Mediterranean countries.
TUNISIA Developing air transport Tunisia’s airport capacities are heavily saturated as a result of the increasing number of tourists. The authorities came up with the solution of building a new airport in Enfidha. The new airport, operated by TAV, has been operational since 2010. It has a capacity to handle 7 million passengers a year. PROPARCO’s € 30 M participation in the project aims to support the tourism sector, create employment (over 7,000 jobs linked to the project) and is in line with its strategy to make sizeable investments in Tunisia. © Salah Bettaieb
© Pascal Fellous
€ 603M
In the framework of the Union for Mediterranean,
subcontracted activities).
HELPING TO FINANCE MICROFINANCE
2007 - 2009
regional offices
finance exemplary environmental projects.
instance, in the framework of construction sites or
KEY FIGURES
3
It also offers banks lines of credit earmarked to
Lebanon has now become a regional financial center and its banks, which benefit from depositor confidence and a sharply growing market, are increasingly seeking to develop at the international level (particularly in the
JORDAN Financing water supply in the City of Amman Mediterranean region and Africa). PROPARCO is supporting this expansion – a factor for regional integration – by offering them long-term resources. For instance, in 2009 PROPARCO took a $30M equity stake in Byblos Bank. In the same year, it also allocated a $15M subordinated loan to Fransabank.
Jordan is one of the ten cities to be the most affected by a water shortage. Amman’s inhabitants only have access to drinking water twice a week. In order to raise the volume of available water in the capital, PROPARCO has participated in financing a project to convey water from © Diwaco
Disi – 320 km away – to Amman. The drinking water supply system built by the project will make it possible to withdraw 100 million m3 of water over a 50-year period. 2.5 million people in Amman will consequently have access to drinking water.
CH HALLLENGES IN THE MEDITERRANEAN Southern and Eastern Mediterranean countries have
creation. It creates precious resources that allow
experienced strong growth in recent years – around
States to play their role as regulators and wealth
4% annually – which has led to a reduction in cer-
distributors. It helps provide certain essential
tain macroeconomic imbalances (particularly infla-
services and plays a key role in meeting environ-
tion levels, debt, budget balance). Yet this growth
mental and social challenges.
is still not enough to bridge the employment defi-
The Mediterranean is a top priority for PROPARCO.
cit: almost a hundred million jobs will need to be
The company is dedicated to financing the private
created over the next twenty years in order to face
sector and catalyzes private investment. With 25%
the sharp rise in an extremely young population.
of its business conducted in the region, PROPARCO
These countries are also geographically and culturally very close to Europe, yet this advantage is underexploited: the Euro-Mediterranean area suf-
PRO OM MOTE BALANCED AND SUSTAINABLE REG GIO ONAL DEVELOPMENT
BOOS ST GROWTH AND JOB CREATION
is the most “Mediterranean” European Develop-
helps raise power generation capacities, reduce
FOR GROWTH
external energy dependence and specifically focuses
RAISING LOCAL FINANCING CAPACITIES
The main causes of the employment deficit that
One of the structural challenges facing the region is
the Mediterranean region needs to address are the
the need to structure and sustainably develop the
Sharp urban population growth leads to huge
fragility of the local SME fabric and the need for
banking sector. r
needs in terms of land use development, as well as
businesses to upgrade.
PROPARCO supports banking activities in order
access to infrastructure and public services (water
PROPARCO supports SMEs and provides an alter-
to raise local financing capacities and offer longer
and sanitation, energy, transport).
native to them becoming overindebted by making
maturities. It achieves this by offering a wide range
PROPARCO, by offering long-term resources, par-
equity investments via two main vehicles:
of lines of credit which are mainly earmarked for
ticipates in financing major industrial and infras-
direct equity investments in businesses;
major banks and their subsidiaries. PROPARCO
tructure projects in the region that involve specific
also helps shore up the equity of financial esta-
financial structures (PPPs, private electricity pro-
blishments, thus allowing them to maintain good
ducers, concessions...). Financing these projects
■
ment Finance Institution.
FINANCING CORE INFRASTRUCTURE
BUILDING BUSINESS COMPETITIVENESS
■
equity investments in local and regional funds.
on promoting renewable energies.
PROPARCO has traditionally focused on the
fers from a great asymmetry in terms of economic
Funds are selected in terms of their capacity to
solvency ratios and supporting their international
Maghreb region and Turkey, but has now exten-
led by major corporates also has a considerable
development and a low level of regional integra-
assist businesses during their development phase
expansion.
ded its activity to the Middle East. Today, it relies
impact on the development of the SME fabric (for
tion. How to adapt to European market require-
by providing real support for their governance in
on three regional offices located in Cairo, Casablan-
ments constitutes a major challenge for Southern
addition to financing. PROPARCO gives priority to
ca and Tunis which cover an extensive area (Algeria,
and Eastern Mediterranean economies.
experienced local teams and makes every effort to
Egypt, Iraq, Jordan, Lebanon, Morocco, Mauritania,
bring in European investors. The leverage is two-
INSTITUTIONS
The main development challenge in this region is
the Palestinian Autonomous Territories, Syria, Tuni-
fold since it makes it possible to reach a greater
sia, Turkey and Yemen).
PROPARCO promotes the creation and develop -
consequently to boost growth in order to create
number of local businesses and also to train teams
ment of very small enterprises. By supporting
jobs and build convergence among Mediterranean
This field presence allows PROPARCO to work
in the highest business management standards.
economies. The Union for the Mediterranean – an
closely with its clients and tailor its business to
microfinance institutions (MFIs), it helps develop
PROPARCO is one of the pioneers in private equity
initiative launched by France in 2008 – aims to pro-
local needs.
the economic fabric and combat poverty. It pro-
investment in the region and has made a major
vides financing via bank guarantees and subordi-
contribution to the development of this industry
nated financing. It also ensures MFIs are oriented
over the past fifteen years. The launch of Averroes II
towards greater professionalization in terms of
PROPARCO pays particular attention to promoting
The private sector has the capacity to be a key
underscores PROPARCO’s will to continue to be a
both financial management and integrating envi-
development that is both productive and sustaina-
player. It is the main engine of growth and job
reference player in the region.
ronmental and social “best practices”.
ble. For instance, in the energy sector PROPARCO
vide solutions to these challenges via major joint projects between the two Mediterranean shores.
PROMOTING SUSTAINABLE GROWTH The Mediterranean region at the same time faces an environmental challenge that gives increasing cause for concern. Pressure on natural resources is largely exacerbated by demographic expansion and climate change.
LEBANON Supporting banks’ international development strategies
of commitments
25 % of business Tunis Casablanca Cairo
PROPARCO, CDC Climat and AFD, alongside other public finance institutions, launched a Mediterranean carbon fund in May 2010. This initiative should be operational by 2011 and aims to support the deployment of environmental projects in Mediterranean countries.
TUNISIA Developing air transport Tunisia’s airport capacities are heavily saturated as a result of the increasing number of tourists. The authorities came up with the solution of building a new airport in Enfidha. The new airport, operated by TAV, has been operational since 2010. It has a capacity to handle 7 million passengers a year. PROPARCO’s € 30 M participation in the project aims to support the tourism sector, create employment (over 7,000 jobs linked to the project) and is in line with its strategy to make sizeable investments in Tunisia. © Salah Bettaieb
© Pascal Fellous
€ 603M
In the framework of the Union for Mediterranean,
subcontracted activities).
HELPING TO FINANCE MICROFINANCE
2007 - 2009
regional offices
finance exemplary environmental projects.
instance, in the framework of construction sites or
KEY FIGURES
3
It also offers banks lines of credit earmarked to
Lebanon has now become a regional financial center and its banks, which benefit from depositor confidence and a sharply growing market, are increasingly seeking to develop at the international level (particularly in the
JORDAN Financing water supply in the City of Amman Mediterranean region and Africa). PROPARCO is supporting this expansion – a factor for regional integration – by offering them long-term resources. For instance, in 2009 PROPARCO took a $30M equity stake in Byblos Bank. In the same year, it also allocated a $15M subordinated loan to Fransabank.
Jordan is one of the ten cities to be the most affected by a water shortage. Amman’s inhabitants only have access to drinking water twice a week. In order to raise the volume of available water in the capital, PROPARCO has participated in financing a project to convey water from © Diwaco
Disi – 320 km away – to Amman. The drinking water supply system built by the project will make it possible to withdraw 100 million m3 of water over a 50-year period. 2.5 million people in Amman will consequently have access to drinking water.
CUS STO OMIZED FINANCIAL SOLUTIONS PROPARCO is a development finance institution jointly held by Agence Française de Développement (AFD) and public and private shareholders PROPARCO focuses exclusively on long-term finan-
■ Loans
from the North and South. The company has a mandate to galvanize pri-
cing in countries or for counterparts that are con-
PROPARCO tailors its medium and long-term loan
sidered too risky by commercial banks. It offers a
vate investment in emerging and developing countries with the aim of
products to the depth of each market. It offers
range of financial products that are complemen-
senior, junior, mezzanine and subordinated loans
tary to traditional commercial products.
ranging between € 5 M and € 100 M. Maturities
Millennium Development Goals (MDGs). PROPARCO was founded thirty years ago on the conviction that the pri-
project requirements. These loans are offered to
vate sector is a key player in development. It tripled its capital in 2008.
financial institutions – including MFIs – and busi-
PROPARCO finances investments that are economically viable, socially
nesses and may be denominated in euros, dollars
equitable, environmentally sustainable and financially profitable. It tailors
or local currencies.
its sectoral strategy to the level of development of each country and
financing from private investors.
■ Local currency products
focuses on productive sectors, financial systems, infrastructure and priva-
PROPARCO supports the development of private
PROPARCO offers guarantees or direct loans in local
te equity investment. PROPARCO invests in a vast geographical area that
equity investment by acquiring stakes in invest-
currency in order to reduce the foreign exchange
encompasses both the major emerging countries and the poorest coun-
ment funds or funds of funds. It also makes direct
risk for its clients. Its signature is a guarantee of sol-
tries, particularly Africa. The company has extremely high requirements in
equity investments in businesses and financial
vency and may take several forms:
terms of social and environmental responsibility.
are destined to be sold after a 4 to 8 year period, once the business has reached a level of maturity that allows it to raise capital on markets or request
establishments. ■
Guarantees for bond issues or other market products;
■
Guarantees for interbank loans;
■
Guarantees for loans in local currency;
■
Liquidity guarantees for mutual funds.
PROPARCO offers a full range of financial products tailored to the needs © Michel Hasson
of private investors in developing countries (loans, equity, guarantees and financial engineering). In 2009, PROPARCO invested 1.1 billion euros in twenty-four projects in over thirty countries.
151, rue Saint-Honoré 75001 Paris Tel. : +33 1 53 44 31 08 Fax : +33 1 53 44 38 38
Cover photo © Pascal Fellous
PROPARCO always acquires minority stakes which
in the Maghreb region and Middle-East
supporting growth, sustainable development and the achievement of the
range between 5 and 15 years depending on
■ Equity investments
PROPARCO
MOROCCO Developing microfinance
© Véronique Pescatori
MEDITERRANEAN Averroes II fund of funds Building on the success of Averroes Finance (first fund of funds specialized in the Mediterranean area), in November 2009 PROPARCO and CDC Entreprises launched a new fund of funds called Averroes II. It will be investing in roughly ten private equity funds and will support around a hundred SMEs.
Al Amana is one of Morocco’s largest microfinance associations. Since it was founded, it has allocated 2 million loans and helped create 120,000 jobs. In 2007, PROPARCO guaranteed an MAD 100 M loan (€ 9 M) that Al Amana took out from Société générale marocaine des banques in order to strengthen its equity capital. Al Amana was consequently able to develop its range of financial products and offer training to its clients.
MOROCCO MAURITANIA ALGERIA
TUNISIA
MIDDLE-EAST
Immeuble Miniar - Bloc B
10, Sri Lanka Street
3e et 4e étages
Zamalek
15, avenue Mers-Sultan
Rue du Lac d’Ourmia
Cairo, Egypt
20130 Casablanca, Morocco
1053, Les Berges du Lac
Tel.: (202) 27 35 17 88
Tel.: (212) 522 29 53 97
Tunis, Tunisia
Fax : (202) 27 35 17 90
Fax : (212) 522 29 53 98
Tel.: (216) 71 861 799
afdlecaire@afd.fr
afdcasablanca@afd.fr
Fax : (216) 71 761 825 afdtunis@afd.fr
N°BVQI: PEFC/10-31-1086. Printed on paper from sustainably managed forests. Printed by: Imprimerie de Pithiviers - Graphic design: Vincent Collin
www.proparco.fr
CUS STO OMIZED FINANCIAL SOLUTIONS PROPARCO is a development finance institution jointly held by Agence Française de Développement (AFD) and public and private shareholders PROPARCO focuses exclusively on long-term finan-
■ Loans
from the North and South. The company has a mandate to galvanize pri-
cing in countries or for counterparts that are con-
PROPARCO tailors its medium and long-term loan
sidered too risky by commercial banks. It offers a
vate investment in emerging and developing countries with the aim of
products to the depth of each market. It offers
range of financial products that are complemen-
senior, junior, mezzanine and subordinated loans
tary to traditional commercial products.
ranging between € 5 M and € 100 M. Maturities
Millennium Development Goals (MDGs). PROPARCO was founded thirty years ago on the conviction that the pri-
project requirements. These loans are offered to
vate sector is a key player in development. It tripled its capital in 2008.
financial institutions – including MFIs – and busi-
PROPARCO finances investments that are economically viable, socially
nesses and may be denominated in euros, dollars
equitable, environmentally sustainable and financially profitable. It tailors
or local currencies.
its sectoral strategy to the level of development of each country and
financing from private investors.
■ Local currency products
focuses on productive sectors, financial systems, infrastructure and priva-
PROPARCO supports the development of private
PROPARCO offers guarantees or direct loans in local
te equity investment. PROPARCO invests in a vast geographical area that
equity investment by acquiring stakes in invest-
currency in order to reduce the foreign exchange
encompasses both the major emerging countries and the poorest coun-
ment funds or funds of funds. It also makes direct
risk for its clients. Its signature is a guarantee of sol-
tries, particularly Africa. The company has extremely high requirements in
equity investments in businesses and financial
vency and may take several forms:
terms of social and environmental responsibility.
are destined to be sold after a 4 to 8 year period, once the business has reached a level of maturity that allows it to raise capital on markets or request
establishments. ■
Guarantees for bond issues or other market products;
■
Guarantees for interbank loans;
■
Guarantees for loans in local currency;
■
Liquidity guarantees for mutual funds.
PROPARCO offers a full range of financial products tailored to the needs © Michel Hasson
of private investors in developing countries (loans, equity, guarantees and financial engineering). In 2009, PROPARCO invested 1.1 billion euros in twenty-four projects in over thirty countries.
151, rue Saint-Honoré 75001 Paris Tel. : +33 1 53 44 31 08 Fax : +33 1 53 44 38 38
Cover photo © Pascal Fellous
PROPARCO always acquires minority stakes which
in the Maghreb region and Middle-East
supporting growth, sustainable development and the achievement of the
range between 5 and 15 years depending on
■ Equity investments
PROPARCO
MOROCCO Developing microfinance
© Véronique Pescatori
MEDITERRANEAN Averroes II fund of funds Building on the success of Averroes Finance (first fund of funds specialized in the Mediterranean area), in November 2009 PROPARCO and CDC Entreprises launched a new fund of funds called Averroes II. It will be investing in roughly ten private equity funds and will support around a hundred SMEs.
Al Amana is one of Morocco’s largest microfinance associations. Since it was founded, it has allocated 2 million loans and helped create 120,000 jobs. In 2007, PROPARCO guaranteed an MAD 100 M loan (€ 9 M) that Al Amana took out from Société générale marocaine des banques in order to strengthen its equity capital. Al Amana was consequently able to develop its range of financial products and offer training to its clients.
MOROCCO MAURITANIA ALGERIA
TUNISIA
MIDDLE-EAST
Immeuble Miniar - Bloc B
10, Sri Lanka Street
3e et 4e étages
Zamalek
15, avenue Mers-Sultan
Rue du Lac d’Ourmia
Cairo, Egypt
20130 Casablanca, Morocco
1053, Les Berges du Lac
Tel.: (202) 27 35 17 88
Tel.: (212) 522 29 53 97
Tunis, Tunisia
Fax : (202) 27 35 17 90
Fax : (212) 522 29 53 98
Tel.: (216) 71 861 799
afdlecaire@afd.fr
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