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Loans in local currency to facilitate financing for development projects
AFD offers financing solutions in local currency under certain conditions.
We can provide financing in currencies other than the euro or the US dollar, depending on borrowers’ capacity to conduct conversion operations and the specific local regulations for each currency (convertibility and transferability).
Objectives
Finance development projects led by entities that are unable to conduct currency conversion operations from the euro or USD dollar currencies to the local currency.
Am I eligible?
You are leading a project aligned with the Sustainable Development Goals (SDGs).
You represent:
- A public enterprise without a State guarantee
- A development bank
- A local authority not guaranteed by the State (consult the list of eligible countries established by the OECD DAC)
To find out about our solutions tailored to your needs
Benefits
- Avoids the foreign exchange risk for the borrower
- Alignment with revenues and budget control
- Adapted to the local economic and political situation
- Two formats proposed (non-deliverable with payments in euros; deliverable with payments in local currency)
Non-deliverable format with payments in euros
Disbursements and repayments are made in euros, but the amounts payable are calculated on the basis of the local currency value at the payment date, at an agreed reference exchange rate.
Deliverable format with payments in local currency
The borrower receives the funds in the local currency and makes repayments in the same currency. This format is less commonly proposed and is limited to a small number of currencies, as it depends on AFD’s ability to obtain coverage in the deliverable format. In addition, this option is subject to the specific local regulations for each currency, such as convertibility and transferability.
