Our range of services

Our range of services

Without substituting for the product ranges of local and international commercial banks, but in complementarity with them, Proparco’s financing is on market terms, in euros, USD or local currency.
  • logo linkedin
  • logo google plus
  • logo email
Deux femmes regardant un écran d'ordinateur
IT OFFERS SEVERAL CATEGORIES OF FINANCIAL PRODUCTS, WHICH COVER THE BULK OF THE FINANCING NEEDS OF THE PRIVATE SECTOR IN SOUTHERN COUNTRIES.

Proparco’s action bridges the gaps of local financial systems that are not always able to provide appropriate financing for the needs of their economies.

Proparco meets this objective without causing market distortions or crowding out effects for private financial actors, particularly local and international commercial banks. Its operations are complementary to their services (principle of subsidiarity), on terms that are as close as possible to those of the market, without grants or elements of concessionality.

By implementing a full range of financial instruments, from senior loans to equity, including convertible bonds and guarantees, Proparco can meet most of the financing needs that would not be covered by private actors.

In addition to their subsidiarity, its operations aim to contribute to achieving real progress in sustainable development in Southern countries (principle of additionality).
 

Loans

Des bureaux avec des gens qui travaillent à leur ordi

Proparco offers loans (from EUR 3m to EUR 100m), in foreign or local currency, to companies and financial institutions with long maturities (up to 20 years), and a grace period for the repayment of capital where warranted. This financing is tailored to the environment and needs of clients.

Equity and quasi-equity

Des femmes assises qui regardent un point comment en dehors de la prise de vue

PROPARCO CAN ALSO MOBILIZE VARIOUS EQUITY INSTRUMENTS:

  • Minority equity investments – direct or indirect – via financial intermediaries, particularly investment funds – in the capital of companies;
  • Subordinated or equity loans;
  • Shareholders’ current accounts;
  • Convertible bonds or bonds redeemable for shares, etc.

Guarantees to strengthen financial markets

Un homme perplexe regardant son écran d'ordinateur

By virtue of its signature, or that of its parent company, AFD, Proparco provides clients with a solvency or liquidity guarantee. This guarantee can take on various forms and includes a variety of underlying instruments : loans in foreign or local currency, bond issues, UCITS listed on financial markets, etc. 

Proparco is thus able to facilitate the mobilisation of resources from banks or institutional investors, in order to enhance the depth and liquidity of financial markets.  

ARIZ: Risk-sharing

Small and medium-sized enterprises (SMEs) make up the bulk of the economic base in developing and emerging countries. To set up and develop their activity, they need medium and long-term financial resources. However, as they are often perceived as a risky clientele, their access to financing remains extremely limited.

In response, Proparco proposes, on behalf of the AFD Group, a risk-sharing solution for private financial institutions: ARIZ.

ARIZ is a final loss guarantee provided by Proparco to private financial institutions to cover an individual loan or loan portfolio for SMEs (up to 50%) or for microfinance institutions (up to 75%). 

It allows:

  • Companies, from small business owners to structured SMEs, to access credit and financing ; 
  • Microfinance institutions to finance and expand their lending activities ; 
  • Our financial partners to share the credit risk, reduce the level of collateral required, be assisted in the development of a strategy and products for SMEs, and increase their lending capacity thanks to the improvement in their solvency ratio and Proparco’s AA rating.

Today, the AFD Group has established partnerships with over 100 financial institutions. The risk-sharing solution is being implemented in over 40 countries in Africa, the Middle East, Latin America and Asia.

ONE TOOL, TWO PRODUCTS

  • ARIZ individual guarantee: risk-sharing allocated on a loan-by-loan basis;
  • ARIZ portfolio guarantee: risk-sharing for a loan portfolio.

 


 

ariz

 

euriz

AFD and Proparco, with the support of the European Union and the African, Caribbean and Pacific Group of States, are launching EURIZ, a new scheme enabling financial institutions to partially hedge their credit risk.

To facilitate MSME’s access to credit in Africa and the Caribbean, Proparco  and AFD, with the support of the European Union and the African, Caribbean and Pacific Group of States, are implementing EURIZ. This new guarantee mechanism enables partner financial institutions (public and private banks, specialised financial institutions), to which MSMEs will apply to obtain a loan in local currency, to partially hedge their credit risk.

EURIZ covers up to 70% of local bank loans granted to MSMEs located in the Caribbean, the Pacific and sub-Saharan Africa, particularly in fragile countries and operating in sectors with a high social and societal impact (the agricultural, health, education, digital, green economy or inclusive business sectors, but also young start-ups, companies owned by women or young people under 25 who are facing increased difficulties in accessing finance). 

The scheme also includes a technical cooperation component that will support these partner institutions to best serve these companies.

This new project is part of the Thematic Blending Framework of the EU’s Development Cooperation Instrument and European Development Fund. 

Financing in local currency

L'immeuble composé de vitres bleus qui réflètent le ciel

A large number of companies, especially small companies, do not have incomes in euros or dollars.

In order to reduce their exposure to the exchange rate risk, which is likely to weaken them, Proparco seeks financing solutions in local currency.

Depending on the case, it uses financial markets that offer hedging instruments for the main currencies (Mexican peso, South African rand, Indian rupee…) or the multi-donor Currency Exchange Fund (TCX) fund. This fund gives it access to currency hedging products for less common foreign currencies.

27
local currencies in portfolio
Projets
SEE PROJECTS
Interactive map

SEE PROJECTS

This map is for illustrative purposes only and does not engage the responsibility of the AFD Group
Geography
Funding type
Antennas
Filters

Geography

Tout cocher
Tout décocher

Funding type

Tout cocher
Tout décocher

Antennas

Display local antennas

Filters

Launch search
See map of all projects