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Non-sovereign loans: Financing for public entities
Our non-sovereign loans finance projects with high social and environmental impact led by public enterprises and institutions and local authorities that do not benefit from the State guarantee. These loans contribute to the sustainable development of our partner countries.
Objective
Finance development projects implemented by public enterprises that are not guaranteed by the State.
Am I eligible?
You are leading a high-impact project aligned with the Sustainable Development Goals (SDGs). Your project aims to build infrastructure, reduce inequalities, innovate for climate protection, or strengthen the institutional and democratic capacities of your country.
You represent:
- A public enterprise
- A development bank
- A local authority not guaranteed by the State (consult the OECD DAC list of eligible countries)
To find out about our solutions tailored to your needs
Benefits
- Maturity of between 5 and 20 years
- Possibility of a concessional interest rate (below the market rate), depending on the nature of the project
- Choice between a fixed or variable rate at each disbursement
- Eligible for loans in local currency (see conditions)
- Technical assistance and personalized support throughout the project lifespan
20 % of our ongoing financing operations are non-sovereign loans.
In 2024, AFD signed non-sovereign loan commitments amounting to 2.6 billion euros.
Type: Loan
Maturity: 5 to 20 years
Grace period: 0 to 7 years
Interest rate: Euribor 6 months + Margin
Disbursements: At each disbursement, you have the choice between a fixed rate or a variable rate, and the possibility, throughout the term of the loan, to convert, without charge, the tranches with a variable rate to tranches at a fixed rate
Currencies: EUR / USD
Repayment schedule / frequency: constant capital / semi-annual
Fees: Commitment fee (0.5%) / appraisal fee (0.5%)
Possible options: Stand-by loan (stand-by credit line combined with a right of confirmation during a determined period), multi-tranche facility (financing for projects with several components or several phases)
Download our product sheet
Our financing solutions
