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).