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Sovereign loans: financing for States
Our sovereign loans finance high-impact development projects or policies led by States or public entities that benefit from the State guarantee.
Objective
Finance the development of sovereign States, in the form of projects or budget financing (public policies) implemented by public entities.
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 State
- A public entity benefiting from the State guarantee
Your country is on the OECD DAC list of countries eligible for ODA.
Your country has the capacity to borrow and a low level of debt.
To find out about our solutions tailored to your needs
Benefits
- Maturity of between 5 and 20 years
- Pricing with varying levels of concessionality depending on the country’s level of development and the French State’s budgetary contribution
- Choice between a fixed rate or a variable rate at each disbursement
- Personalized support throughout the project lifespan
50 % of our ongoing financing operations are sovereign loans.
In 2024, AFD signed a historic €5.3 billion in sovereign loan commitments.
Type: Loan
Maturity: 5 to 20 years
Grace period: 0 to 7 years
Interest rate: Euribor 6 months + Margin
Disbursements: At each disbursement, the borrower has 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 fixed-rate tranches
Currencies: EUR / USD
Repayment schedule / frequency: constant capital / semi-annual
Fees: Commitment fee (0.5%) / appraisal fee (0.5%)
Options: Contingency loan (stand-by budget financing available in the event of a natural disaster), multi-tranche facility (financing for projects with several components or several phases)
Our financing solutions
