AFD Group and companies
AFD Group provides a responsive forum where solutions can be sought for companies looking to find out how they can contribute – through their investments, innovations and expertise – to addressing the sustainable development challenges. Our objective: bring about new economic models that are low-carbon, more inclusive, more responsible, and together take up the challenge whereby the companies making the financial and human choice for investment and responsible procurement today will be the winners of the economy of tomorrow.
Financial tools to meet the financing needs for sustainable development and the climate
AFD allocates various types of loans. Their terms are determined depending on the type of project and its environment (impact and political, economic, social and environmental context) and the quality of the borrower (sector, rating, guarantees).
Guarantees: The instrument to mobilize local resources
In practical terms, AFD allocates guarantees for financing for companies and bond issues conducted on the markets by financial institutions or certain States.
AFD uses grants to finance actions in the social sector (health, education), initiatives for rural and urban development, and infrastructure projects.
Proparco, AFD’s private sector financing arm
Proparco, AFD’s private sector financing arm, has been working for 40 years to promote sustainable economic, social and environmental development.
Proparco participates in financing and supporting companies and financial institutions in Africa, Asia, Latin America and the Middle East. Its action focuses on the key development sectors: infrastructure, mainly for renewable energies, agribusiness, financial institutions, health, education… Its operations aim to strengthen the contribution that private actors make to the achievement of the Sustainable Development Goals (SDGs), adopted by the international community in 2015.
To this end, Proparco finances companies, banks and private financial institutions whose activities contribute to creating jobs and decent incomes, the provision of essential goods and services, and the fight against climate change.
There are three types of financing: equity, loans on market terms and guarantees.
SUNREF: AFD’s green finance label
SUNREF is a green credit line for companies developed by AFD, which uses a network of partner banks.
The SUNREF program also offers partner banks in the South special partnership conditions to allow them to seize the opportunities of the ecological and energy transition and boost financing for green investments.
SUNREF’s innovation is based on the combination of a financial approach and technical approach in order to meet the demand of partner banks and companies leading investments:
- The financial approach involves providing partner local banks with long-term loans (green credit lines). These loans can be allocated on favorable terms according to certain criteria (maturity of the green financing market, type of investment, clients targeted);
- The technical approach aims to support and scale up the market for green investments, by assisting banks in project financing, and building the capacities of beneficiary companies for the implementation of strategies for an optimized use of energy and natural resources.