Société Générale and Agence Française de Développement join forces to give entrepreneurs in Africa and the Mediterranean easier access to financing

In order to speed up the process to finance entrepreneurs in Africa and the Mediterranean, Frédéric Oudéa, Chairman and CEO of Société Générale, signed an agreement today with Jean Michel Severino, Director General of Agence Française de Développement, in the presence of Jean Louis Mattei, Director of International Retail Banking at Société Générale Group.

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