Investing in a sustainable future

PROPARCO is extending its areas of activity to Latin America

Anne-Marie IDRAC, the French Trade Minister, during her trip to Colombia, for the Inter American Development Bank annual Governors Assembly, has announced that PROPARCO, the French development finance institution specialized in long-term private sector financing in emerging countries, is extending its areas of activity to Latin America.

At a ministerial roundtable on possible remedies to the trade finance crisis chaired by Anne-Marie IDRAC, the Minister has announced that PROPARCO will fully play its countercyclical role in  Latin America. This initiative takes place before the G20 Summit, during which France is to support the gearing up of mutilateral and bilateral trade finance institutions, in order to address especially the long term financial needs of Latin American countries, for key development projects.

PROPARCO is a development finance institution jointly held by Agence Française de Développement (AFD) (58%) and public and private shareholders from the North and South (42%).

Instructed by the French Governement, the 26 March 2009 Board of Directors meeting confirmed this new extension of PROPARCO’s geographical areas of activity to Latin America in MERCOSUR countries and Central America.

The extension of the French Development Agency activities to several Latin American Countries, including Colombia, will follow in the coming weeks.

PROPARCO’s activity in Latin America will follow on from its activities in Brazil and the Caribbean and will be in line with its global strategy to combat climate change. It will continue its activities in the sectors of renewable energies, biofuels, energy efficiency, rail transport (with a focus on Public Private Partnerships) and will support activities eligible under the Clean Development Mechanism.

Productive projects that preserve biodiversity will also be a specific focus (renewable forest exploitation, depollution, sanitation), as well as activities to support social sectors or the poorest populations (health, education, microfinance).


A public/private and North/South player dedicated to private sector financing in emerging economies

PROPARCO is Agence Française de Développement’s (AFD) private sector financing arm. AFD is a public financial Institution and the main operator for France’s official development assistance to poor and emerging countries. Its actions to support economic growth and preserve the environment fall within the framework of the Millennium Development Goals and Global Public Goods. AFD has 64 representations abroad, a staff of 1 478 and operates in over 60 countries. In 2008 its commitments stood at 3.4 billion euros, a 25% rise compared to 2007.

PROPARCO finances operations which are economically viable, socially equitable, environmentally sustainable and financially profitable. Its activities are designed to meet the specific needs of investors in these regions.

Its sectoral strategy is tailored to each country’s level of development and focuses on the productive sector, financial systems, infrastructure and private equity investment.

PROPARCO has a wide range of financial products to meet the specific needs of private investors in developing countries (loans, equity, guarantees and financial engineering).

PROPARCO is an active member of the association of European Development Finance Institutions (EDFI) which gathers around fifteen similar institutions and creates real leverage for borrowers via co-investments for most types of project.