Companies

This agreement concerns subsidiaries in Africa and the Mediterranean, but the geographical area may be extended. Under the agreement, Agence Française de Développement (AFD) will guarantee up to 50% of the risk borne by Société Générale in its activity to finance entrepreneurs, within an overall package of some EUR50M. The loans targeted are investment loans with unit amounts below EUR300 000. The guarantee mechanism is simple and rapid.

Access to financing for entrepreneurs is a major issue for economic growth and the creation of sustainable employment. Agence Française de Développement Group promotes and supports investment in small and medium-sized enterprises in Africa and the countries where it operates via several tools designed for local financial systems.

Société Générale shares the same objective in France and the 36 countries where the bank has retail banking activities. These subsidiaries play a key role in financing the economy and the private sector in order to give economic players easier access to credit, including professionals and small and medium-sized enterprises.

Commenting on the signing of this agreement, Jean Michel Severino declared: “By offering to share the risk of unpaid loans with banks, AFD aims to contribute to widely boosting a range of financing tailored to the needs of small enterprises. This partnership with Société Générale and its network in 17 countries marks an important step towards reaching this target in Africa and the Mediterranean”.

For Jean Louis Mattei: “Our subsidiaries make a special effort to support entrepreneurs. Many have adapted their commercial and loan allocation systems in order to meet the needs of these entrepreneurs and better apprehend the risk. This partnership with Agence Française de Développement will boost our loan production and allow us to raise our capacity in this client segment more swiftly”.

Société Générale
Société Générale is one of the leading financial services groups in the euro zone. With 163,000 staff throughout the world, its business activities focus on three major activities:

• Retail & Financial Services Networks with over 30 million private customers in France and internationally.
• Asset & Services management on behalf of investors, the Group being a leading bank in the euro zone with 3 073 billion euros of assets held and 348 billion euros of assets managed at the end of September 2009.
• Finance and investment bank: Société Générale Corporate & Investment Banking supports its clients in a number of sectors and provides tailored solutions, thanks to its global experience in investment banking, financing and market activities.

Société Générale is listed on the international sustainable development indices: FTSE4good and ASPI.
www.societegenerale.com

Agence Française de Développement
Agence Française de Développement (AFD) has been combating poverty and promoting development in South countries and Overseas France for over 60 years and implements the development policy defined by the French Government.
AFD is active in the field in over 50 countries and finances and supports projects to improve living conditions for populations, boost economic growth and protect the planet: getting children into school, supporting farmers and small companies, providing water supply, preserving tropical forests, combating climate change…
In 2008, AFD earmarked some 4.5 billion euros to finance operations in South countries and Overseas France. Thanks to this financing 6.9 million children were able to go to school and 4.4 million people gained access to water supply. Energy efficiency projects for the same year will save 13.8 million tons of CO2 annually. 
www.afd.fr

PRESS CONTACTS

Société Générale
Stéphanie Carson-Parker
E-mail: stephanie.carson-parker@socgen.com
 
AFD
Nolwenn Bodo
E-mail: bodon@afd.fr

Anne-Sophie Morizot (Hopscotch)
E-mail: asmorizot@hopscotch.fr
 

AMUNDI AFD AVENIRS DURABLES
More than an investment, a way to get involved

Jean-Michel Severino, Chief Executive Officer of Agence Française de Développement (AFD) and René Carron, Chairman of Crédit Agricole SA, announced this morning in the presence of Mrs Christine Lagarde, French Minister of the Economy, Industry of Employment, the launch of AMUNDI AFD AVENIRS DURABLES (Sustainable Futures), an SRI (Socially Responsible Investment) mutual fund that allows savers to participate in financing projects in developing countries. This innovative financial product aims to create new sources of financing for development, while at the same time meeting the demands of savers seeking socially responsible investments.

René Carron, Christine Lagarde, Jean-Michel Severino and Yves Perrier 

 

By creating AMUNDI AFD AVENIRS DURABLES, Agence Française de Développement (AFD) and Crédit Agricole Asset Management Group (CAAM Group) aim to offer an innovative product that reconciles cautious and responsible investment with development aid. AMUNDI AFD AVENIRS DURABLES builds a bridge between the saving capacities of North countries and the financing needs of South countries. It provides the right response to savers who are concerned by sustainable development issues and wish to give a meaning to their investments. The fund is one of the few responsible investment products that contribute to financing development aid projects in the three main sectors which reflect the priority missions of AFD: combating poverty, supporting economic growth and protecting the planet and the environment. The fund has an ad hoc reflection committee which will meet periodically to propose investment projects that best meet the fund’s development aid targets.

AMUNDI AFD AVENIRS DURABLES is a “diversified” mutual fund that applies the principles of Responsible Investment which give priority to companies and issuers that integrate environmental and social concerns into their profitability targets. This fund aims to provide a net performance equal to or above Eonia (capitalized) over a 3-year investment horizon.

AMUNDI AFD AVENIRS DURABLES has a cautious investment strategy which involves investing an average of 70% of its assets in a selection of mainly monetary and bond funds and, to a lesser extent, shares. These funds give priority to investments in the flagship topics for sustainable development such as access to water, renewable energies and waste treatment. In addition, an average of 30% of the portfolio targets development aid, with roughly 20% of investments in bonds issued by AFD and up to 10% to cofinance projects that create economic and social value in developing countries, particularly via subscriptions to PROPARCO’s shares (unlisted company). PROPARCO is AFD’s private sector financing arm and supports economically viable and financially profitable projects that directly contribute to improving living conditions for populations, boosting economic growth and protecting the planet.

AMUNDI AFD AVENIRS DURABLES is an initiative based on a public-private partnership that combines two areas of expertise: that of AFD as the main operator for France’s official development assistance mechanism, and that of CAAM Group as a major player in financial asset management. Moreover, Crédit Agricole Group also enjoys an extensive distribution network for mutual funds.

With this new product, AFD and CAAM Group are demonstrating that grants and subsidies are no longer the exclusive method for financing development aid. “Our initiative comes at a time when the need to create new sources of financing, particularly to reach the “Millennium Development Goals”* has become crucial. This so-called innovative financing is additional to State commitments and official development assistance.” explains Jean-Michel Severino, Chief Executive Officer of AFD.

In addition, in the context of the financial crisis, initiatives that create economic and social value have become essential: “The crisis makes us take stock of the reality and effects of globalization. It makes us put the real economy back where it belongs: as a core priority. It makes us give more meaning to our actions. The responsible and social aspect that underscores our joint initiative with AFD is in line with this requirement. It is a natural expression of our mutualist values”, continues René Carron, Chairman of Crédit Agricole SA. 

In the current context, where there is a loss of confidence in financial markets, private savers and investors are no longer only seeking financial performance. They also wish to give a new meaning to their savings. AMUNDI AFD AVENIRS DURABLES provides a response tailored to their needs. “We are proud to be working in partnership with Agence Française de Développement for a development aid project that is an example of our will to make SRI a cornerstone of our investment policies.” declares Yves Perrier, Chairman of CAAM Group.

* The eight goals that the UN member States agreed to reach by 2015. The declaration was signed in September 2000.

For full details, please consult the website: www.amundiafdavenirsdurables.org

About AFD
Agence Française de Développement (AFD), a public establishment, has been combating poverty, promoting development and protecting the environment in South countries and Overseas France for over sixty years. It implements the development policy devised by the French Government, represented by the French Ministry of the Economy, Industry and Employment, the Ministry of Foreign and European Affairs and the Ministry for Overseas France.
AFD and its subsidiary Proparco are active in the field in over 50 countries and finance and support projects that improve living conditions for populations, contribute to economic growth and protect the planet: getting children into school, supporting farmers, supporting small businesses, water supply, preservation of tropical rainforests, combating climate change…
www.afd.fr

About Crédit Agricole Asset Management Group (CAAM Group)
CAAM Group is the asset holding company of Crédit Agricole Group. With €453.10 billion of total assets under management as at 30 June 2009, CAAM Group is the one of the five largest asset managers in continental Europe.(1) It is also It is also N°1 in Europe (2) and N°1 in France (3) in mutual funds and in SRI (4).
CAAM Group has a 2 217 strong staff, including 539 investment professionals.
All CAAM Group subsidiaries provide a comprehensive range of investment products to:
- networks of the regional Crédit Agricole banks, LCL and Crédit Agricole’s retail bank subsidiaries abroad,
- institutional investors, major corporates and third-party distributors in France and abroad.
CAAM Group is present in over 20 countries (Europe, Asia-Pacific, North America, Middle East).
(1) IPE - Top 400 European Asset Management Leaders, data at December 2008, issued in July 2009
(2) Lipper – Mutual funds marketed in Europe – June 2009
(3) Europerformance, Mutual funds – June 2009
(4) Source: Novethic SRI Essentials – July 2009 (open-ended funds)
www.caam.com

>> See the characteristics of AMUNDI AFD Avenirs Durables

UBIFRANCE, AFD and PROPARCO are part of the mechanism deployed by France at the international level: they have the common aim of enhancing France’s influence and visibility.

“They have a lot in common”, declared Anne-Marie IDRAC, “geographically, with the complementarity between the two representation networks abroad, and also strategically since supporting economic growth and private sector development are priorities for both establishments”.

One of the strategic areas for AFD and PROPARCO operations is to boost growth and strengthen the private sector. This strengthening can involve establishing and transferring the technology of French businesses, particularly in the framework of joint ventures with local partners.

UBIFRANCE has been entrusted with a mission to scale up the presence of French SMEs on international markets and has a target to support 20 000 businesses every year by the end of 2011. Emerging and Mediterranean countries will be a specific focus in order to strengthen the presence of French businesses in these areas, particularly via the establishment and creation of joint ventures. UBIFRANCE consequently wishes to extend its range of financial tools to support business investment projects.

The agreement has the following objectives:

• To share general information about the countries where they both operate in the following areas: economic and financial situation, state of infrastructure, business environment, sectoral prospects, particularly in the energy efficiency sector.
• To facilitate the promotion of French expertise in these countries through a better understanding of the financial tools provided by AFD Group, better knowledge of the projects financed, and a wider dissemination of the bid invitations and procurement that AFD finances.
• To study prospects for establishing French SMEs in these regions, particularly by using the range of financial tools provided by AFD Group. The aim is to reach an agreement in the coming months with at least one French banking network which will be selected via a bid invitation.