Beirut - May 13th, 2009 Financing Forum PROPARCO (AFD GROUP) Elodie PARENT Sanabel 6 th Annual Conference

General overview of PROPARCO Created in 1977 and dedicated to the financing of private initiatives in emerging and developing countries: – Shareholding split amongst AFD (59%) and selected private business partners ; – Role of promotion of investments and market structuration through grant of loans, guarantees and equity investments; Focus on selected economic development issues : – Infrastructure, Banking and financial services, Participating in investment funds, Promotion of natural ressources & Microfinance

Key figures 2008 Key figures 2008 a year of growth Loans : Commitments : €M 683,5 Outstanding loans : €M 1029,8 Equity : Equity : Transaction approvals: €M 99,1 (17 transactions). Gross value of equity portfolio: €M 215,7 Guarantees : Guarantees : Transaction approvals: €M 6,8 Committed guarantees : €M 55,8 Capital: €M 420 Balance sheet : € 1,6 billion Net income : €M 20,8

Proparco’s Microfinance strategy Objective: support MFI’s operating in areas where market risk-profitability ratios do not allow them to finance their growth using private ressources Financial tools: - Equity and Quasi-Equity: Less than 20% of the capital of the institution, a minimum ticket of 1 MEUR, exit policy at 7-8 years - Loans: 3 to 15-year maturity, minimum 5 MUSD, denominated in EUR, USD or local currencies, at market conditions, senior and/or subordinated loan -Guarantees: all types and tenors, commercial loans or bond issues, local or hard currencies Operating criteria: - Greenfield or brownfield projects, - Any legal structures (Bank of microfinance, NGO, company…), - Financial structure => next slide

Key criterias Size : minimum equity of 5 MUSD and total assets of 50 MUSD Profitability: positive net profit for 3 years minimum, minimum ROE of 10% and ROA of 1.5%, Loan portfolio/total assets > 70% Quality of portfolio (Portfolio at Risk < 5 % in any case). Financial rating Strategy and positioning on the market

Key criterias – Cont’d Governance - Anti-Money Laundering and against the Financing of Terrorism procedures (AML/FT) - Environmental Responsibility (ESR) - Transparency Social performances as guidelines for both (i) internal management of the MFI and (ii) operational activities Rate policy as linked to the financial performances : Could the financial performances justify the interest rate ? => Main shareholders and shareholding pattern and managers

AL AMANA – Quasi-equity investment Al Amana is an NGO => not possible to invest in equity “Equity” enhancement of 9 MEUR to match the ratio : “Equity like”/Total assets = 15 % (financial covenant) Tenor : 8 years & grace period: 5 years Context : subordinated loan to MFI are not regulated => what ensure recognition of subordination by other investors ? Structuration of the subordination aligned on local banking regulation (no prepayment can be asked by Proparco in any case,…) Issue of local currency => guarantee to a local bank which provides the local subordinated funding => High level of commitment of Proparco => hence need for the key criterias to be fulfilled

PROPARCO 151, rue Saint Honoré; Paris Tel : +33 (0) Fax : +33 (0) PROPARCO key contacts: Elodie ParentT : +33 (0) Bérengère Basset T : +33 (0) Amélie JulyT : +33 (0) Key contacts

Thank you for your attention