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Loans: AFD’s primary financing tool
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Loans account for the vast majority of Agence Française de Développement (AFD)’s financial activity (90%), while grants for sustainable development projects represent 10%. This lean economic model helps multiply development impacts worldwide.
Although not widely known, loans are by far the main financial instrument used by AFD to implement France’s development policy and support progress toward the United Nations Sustainable Development Goals (SDGs).
In 2025, the volume of loans amounted to nearly €12 billion, representing around 90% of total activity, compared with 10% for grants. In 2023, this breakdown stood at 80% for loans and 20% for grants.
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In 2025, around 1,000 new impact projects were supported. This brought the total number of ongoing projects to 4,300 across 160 countries and 12 French Overseas Territories. As of 2024, the total amount still to be repaid to AFD Group by borrowers, known as the net outstanding loan portfolio, stood at nearly €51 billion.
A lean and high-impact financial model
To mobilize these resources, AFD borrows on financial markets from private investors, pension funds, and central banks. It benefits from favorable borrowing rates thanks to the financial strength of the French government, its sole shareholder.
The cost of borrowing is built into the pricing of AFD loans. The interest rates applied are designed to cover the Group’s operating costs, including premises, staff salaries, and the equity required to manage credit risk. In 2024, AFD generated net income of €344 million. This made it possible to pay a dividend equal to 20% of earnings to the French government and to strengthen the capital base needed for its operations.
Where does AFD's money come from, and where does it go?
Loans support sectors such as energy, access to water, and agriculture, with tangible results. In 2024, for example, 1.5 million people gained access to safe and clean drinking water through France’s actions via AFD Group.
Financial tools backed by sectoral and geographic expertise
AFD loans are available to a wide range of borrowers, including governments, public institutions, state-owned enterprises, and local authorities. Loan terms vary depending on the project, its operating environment, and the borrower’s credit profile. Maturities generally range from 5 to 20 years. Loans may carry fixed or variable interest rates, be denominated in local currency, or include concessional terms.
These loans also support development in the French overseas territories, where AFD Group invested €1 billion in 2024. Three types of loans are available. They are the Overseas Public Sector Loan (PSP), PSP Transitions, and Pre-financing for European and State Grants. Together, they support infrastructure development, social, environmental and digital transitions, and provide bridge financing to municipalities while they await grants from the European Union or the French government. All are offered at preferential rates.
AFD’s offering is not limited to financial loans. It also includes expertise tailored to the regions and sectors targeted by each project. This work draws on the full strength of AFD Group, including Proparco and Expertise France, and on close collaboration with partners. This synergy reflects AFD’s approach – working by your side.