SOLUTIONS FOR FINANCIAL INSTITUTIONS Business in common
OUR STRATEGY FOR 2017 - 2020: GROWTH WITH IMPACTS
SDGs
OUR MISSION
OUR TOOLS
Strengthening the private sector’s contribution to the achievement of the Sustainable Development Goals (SDGs)
+ Loans + Equity and quasi-equity investments + Investment funds + Guarantees + Technical assistance
+ Stimulating growth and job creation + Developing and deepening financial markets +P romoting responsible and sustainable economic models
OUR IMPACT IN 2020
JOBS
CLIMATE
1.7 M direct and indirect jobs supported each year
5 M teq CO2 avoided per year
2020: € 2 bn per year
PROPARCO
OUR PRINCIPLES Proparco, a patient partner that catalyses private investment with strong development impacts
COMMITMENTS
2x
CLIENTS IMPACTS
3x
OUR VALUE PROPOSITION
OUR AREAS OF EXPERTISE
+A n extensive network of clients and partners in multiple sectors and geographies + Ability to organise complex projects + An international network + E nvironmental and social approach: assisting our clients in improving their E&S performance +C ofinancing arrangements with partner institutions (DEG, FMO, IFC, etc.) +H igh standards of due diligence +S ynergies with AFD: sector expertise, presence in 70 countries, contact with local authorities and main donors, co-financing
+ Agriculture and agribusiness +A ccess to finance (banks, microfinance and financial inclusion) + Social sectors (health and education) +C limate smart infrastructure (energy, transport, water and sanitation)
SERVICES education, healthcare, energy infrastructures
12 M people given access to essential goods and services per year CAPACITY BUILDING for businesses
2015: € 1 bn per year
PROPARCO, A FINANCIAL INSTITUTION SERVING THE PRIVATE SECTOR AND SUSTAINABLE DEVELOPMENT
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OUR OBJECTIVES FOR 2020
180 companies assisted by Proparco on environmental, social and governance issues
A NORTH / SOUTH INVESTMENT COMMUNITY A strong capital base of € 693 M and commited shareholders
64.2% AFD
21.7%
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)
French financial institutions In addition to the Agence Française de Développement, its majority shareholder, the shareholder base spans a broad
11.8%
International financial institutions
1.7%
range of public and private
Corporates
institutions – from France,
0.6%
Europe, Latin America and Africa.
Extensive international network of 72 agencies and representative offices
Funds & Ethical Foundations
€ 9.4 Bn of new commitments in 2016 #BusinessInCommon
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OUR PRESENCE WORLDWIDE 11 REGIONAL OFFICES COVERING OVER 80 COUNTRIES
€1.3 m
INCLUDING INCLUDING
NEW COMMITMENTS AT DECEMBER 31ST, 2016
100+ 100+ SUPPORTED SUPPORTED for their for their
450+450+
environmentalenvironmental and social and social performance performance since 2013 since 2013
CLIENTSCLIENTS
250+
OFFICERS
30+
SHAREHOLDERS
Figures as of 2016
4
ISTANBUL Turkey and Middle East, Central Asia, Caucasus, Southeast Europe
PARIS PROPARCO Headquarters
SANTO DOMINGO Dominican Republic & Haiti
BEIJING China
3
CASABLANCA North Africa
10
NEW DELHI South Asia
1 5
MEXICO Central America and the Carribean
ABIDJAN West Africa
6
LAGOS Nigeria
9
NAIROBI East Africa 7
Our offices and the regions they cover Branch offices
4
2
SAO PAULO South America
DOUALA Central Africa
11
BANGKOK North and Southeast Asia
8
JOHANNESBURG Southern Africa and Indian Ocean
#BusinessInCommon
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OUR OBJECTIVES FOR FINANCIAL INSTITUTIONS & CAPITAL MARKETS
SOLUTIONS FOR YOUR BUSINESS
Strong financial institutions and capital markets play a key role for a sustainable and inclusive economy FINANCIAL 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
PROPARCO 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
INFRASTRUCTURE PROPARCO 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
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
OUTSTANDING COMMITMENTS BY SECTOR Total €4,810m
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Financial institutions and markets 46% (€2,199m) 24% (€1,148m) Energy infrastructure Miscellaneous and multi-sector 14% (€651m) 7% (€323m) Agriculture and agribusiness 6% (€290m) Healthcare and education (€83m) 2% Telecoms (€81m) 2% Industry (€35m) 1% Microfinance
% OF TOTAL at Dec. 31, 2016
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 FINANCIAL INSTITUTIONS
160
partner financial institutions
30
new transactions per year
#BusinessInCommon
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OUR PRODUCT OFFER Equity & quasi equity
Loans
FINANCIAL SOLUTIONS
€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
… AND EXTRA-FINANCIAL SOLUTIONS
Technical assistance
€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)
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
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#BusinessInCommon
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Financial Institutions IN LATIN AMERICA a key strategic priority for
PROPARCO
HIGH IMPACT PROJECTS
FINANCIAL INCLUSION STRENGTHENING A FEDERATION OF FINANCIAL COOPERATIVES IN EL SALVADOR
FEDECRÉDITO USD 15 million syndicated debt facility 7 years (1 y grace) 2016
SANTO-DOMINGO Dominican Republic & Haïti
TIER 2 REINFORCING THE CAPITAL BASE OF BANPRO IN NICARAGUA
MEXICO Central America & the Caribbean
Our 2 offices
SAO PAULO South America
Branch office
40
FI partners in Latin America
10
IN 15 COUNTRIES
€ 600 M
outstanding commitments
RENEWABLE ENERGY BOOSTING INVESTMENTS IN PANAMA
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) 2017
SMEs INCREASING ACCESS TO FINANCE IN ECUADOR
AGRICULTURE FACILITATING ACCESS TO FUNDING FOR SMALL-SCALE PRODUCERS IN LATIN AMERICA
PICHINCHA Subordinated debt USD 10 million 7 years (5y grace) 2014
LAAD Credit facility USD 20 million 7 years (2 y grace) 2015 #BusinessInCommon 11
PROPARCO Regional Offices in Latin America
PROPARCO Head Office
MEXICO Torre Omega Campos Eliseos n°345 11560 México D.F.
PARIS 151 Rue Saint-Honoré 75001 Paris, France
PAUL CENTENO-LAPPAS Head of Regional Office for Central America and the Caribbean centeno-lappasp@proparco.fr
SÃO PAULO Edifício Çiragan Office Alameda Ministro Rocha de Azevedo 38 - CJ 1103 01410-000 - SP São Paulo BENJAMIN GUERINI Head of regional Office for South America guerinib@proparco.fr
ANGÉLICA SANTIAGO Investment Officer santiagoa@proparco.fr
MATHIEU LEBEGUE Deputy-Head lebeguem@proparco.fr
VALENTINE ARINO Investment Officer arinov@proparco.fr
EDUARDO DIAS AGUILAR Investment Officer aguilare@proparco.fr GUILHERME MEIRA Investment Officer meirag@proparco.fr JEAN-GUILLAUME BULL Investment Officer bulljg@proparco.fr
PROPARCO – a subsidiary of the Agence Française de Développement (AFD) dedicated to the private sector – has been supporting sustainable development for 40 years. 12
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 Investment Officer, 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
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