Our solutions

Financial institutions

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Supporting financial institutions

AFD Group offers financing solutions to local financial institutions (commercial banks, microfinance institutions and non-banking institutions, such as leasing, factoring and insurance companies) to expand the range of products and services adapted to the needs of small and medium-sized enterprises.

In addition to this financing, AFD Group offers advisory and assistance services to its partner financial institutions so that they can more effectively meet the financing needs of local SMEs.

Key figures


EUR 1.5bn

for microenterprises/SMEs in partnership with financial institutions

including EUR 600m

of credit lines allocated to financial institutions and earmarked for SMEs

and EUR 900m

of guarantees allocated to promote access to credit for microenterprises/SMEs

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Our financing solutions

Debt Instruments


  • Proparco offers financial institutions:
    • subordinated debt in EUR or USD for EUR 5m to EUR 25m for 5 to 10-year periods based on regulatory requirements. This Tier 2 debt aims to strengthen the equity of banks to assist their development in the SME segment
    • Senior loans for EUR 10m to EUR 100m (in EUR or USD) with a 4 to 12-year maturity to finance the development of the SME portfolio of banks.
    • Subscriptions of Social Bond issues, as defined by ICMA, with a use of funds earmarked for SME financing.

Strengthening equity

PictoPROPARCO also invests in equity for a 5 to 8-year period, either directly (with average tickets of €5 million to €25 million for banks or leasing companies, €3 million to €20 million for microfinance institutions, and €500,000 to €3 million for FinTech start-ups), or on behalf of FISEA for small Tier 2 or Tier 3 financial institutions (including MFIs and institutions that guarantee SME portfolios), or via investment funds dedicated to the financial sector.

Guarantee tools

  • We offer financial institutions risk-sharing tools to facilitate access to credit for microenterprises, SMEs and microfinance institutions via the following tools:
    • ARIZ: a final loss guarantee offered to financial institutions to cover 50% of an individual loan to an SME, 75% of an individual loan to a microfinance institution or 50% of an African SME loan portfolio
      Find out more
    • MENA facility (guarantee component): a risk-sharing mechanism for private financial institutions in North African countries (Algeria, Egypt, Morocco and Tunisia) and the Middle East. With the support of the European Union.

      Find out more
    • EURIZ: a final loss guarantee offered to financial institutions operating in the ACP (Africa, Caribbean and Pacific) region to cover up to 70% of loans to developmental SMEs or 50% of loans to SMEs in difficult areas With the support of the European Union and the Organization of African, Caribbean and Pacific States (ACP).
      Find out more
    • ARIZ TPE MINKA: a portfolio guarantee implemented by PROPARCO for financial institutions to allow them to cover up to 80% of loans to microenterprises/SMEs in certain crisis regions in Africa and the Middle East Find out more with an example
    • TRADE FINANCE: By securing the trade-related payment obligations of approved financial institutions in emerging markets, Proparco’s Trade Finance Programme supports growth and competitiveness of local SMEs.
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Our support and advisory solutions

Technical and strategic assistance


  • In addition to financing, AFD Group also offers its partner financial institutions customized assistance to:
    • Improve their practices (environmental and social management system, governance, reducing gender inequalities)
    • Develop products and services for SMEs
    • Support their digital transformation
      • SME approach: development of specific financial services, risk assessment methodologies and an appropriate commercial approach, as well as the development of non-financial services (training, networking, coaching, etc.)
      • Products and services for SMEs in the agricultural sector
      • Products and services for energy efficiency and renewable energy projects for SMEs
    • Support their digital transformation
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Our emblematic projects


Investment type