OUR FINANCING SOLUTIONS FOR THE PRIVATE SECTOR IN LATIN AMERICA AND THE CARIBBEAN
USD 2.4 bn in twelve years
106
projects funded since 2006
PROPARCO has been working for the private sector and sustainable development for over 40 years. A subsidiary of Agence Française de Développement, PROPARCO invests to support the growth of private players and funders mobilized to contribute to the economic, environmental and social development of developing and emerging countries.
25%
of PROPARCO’s portfolio is located in Latin America and the Caribbean
We finance companies and financial institutions whose activity contributes to the creation of decent jobs and incomes, the provision of essential goods and services, and the fight against climate change. Our operations thereby aim to strengthen the contribution that private players make to the achievement of the Sustainable Development Goals.
OUR PRESENCE IN THE LATIN AMERICA AND CARIBBEAN REGION MEXICO CITY REGIONAL OFFICE
+10 years
Mexico, Central America and Caribbean
local presence
4
SANTO DOMING0 REPRESENTATION OFFICE
Haiti, Dominican Republic
permanent offices
SAO PAULO REGIONAL OFFICE
South America
BOGOTA ANDEAN ZONE UNIT
Colombia, Ecuador, Peru
Latin America accounted for 28% of commitments in 2017
OUR REGIONAL OPERATIONS BY SECTOR OF ACTIVITY AGRIBUSINESS AND FOREST INDUSTRIES
ENERGY AND CLIMATE
33%
TELECOMS
3%
MULTI-SECTOR
2%
12%
BANKS AND FINANCIAL INSTITUTIONS
36%
3% HEALTH 4%
EDUCATION
INFRASTRUCTURE
6%
USD 2.4bn of projects committed between 2006 and 2017 The total is not equal to 100% due to rounding
PROPARCO'S PRIORITIES 3 4 7 9 12
8 12 13 Support to local banks, with a focus on facilitating financing for agricultural and agribusiness projects, renewable energy and energy efficiency projects and support for SMEs
8
Strengthen the private sector’s contribution to the Sustainable Development Goals (SDGs)
Direct and indirect job creation The development of microfinance
Access to essential goods and services: health, education, water, sanitation, electricity and telecoms
7 13 Private sector initiatives for renewable energies and energy efficiency
RECONCILING ECONOMIC GROWTH, SOCIAL PROGRESS AND ENVIRONMENTAL BALANCES CHALLENGES TO ADDRESS Since 2006, PROPARCO has been working with private players in Latin American and Caribbean countries to contribute to green and inclusive growth, in line with the mandate entrusted to AFD Group in emerging countries by the French authorities.
HOW? By
assisting economies in the subcontinent towards a growth model consuming fewer natural resources with lower greenhouse gas emissions
By
promoting the development of the local economic base and the reduction of inequalities.
A WIDE RANGE OF FINANCIAL PRODUCTS LOANS USD 2 249m EQUITY USD 133m OTHER SECURITIES USD 1,7m
94% 6%
BUSINESS IN COMMON
0,1%
The total is not equal to 100% due to rounding
FOCUS ON SOME PROJECTS FINANCED SINCE 2006 SUPPORT TAILORED TO CLIENTS
AGRIBUSINESS AND SERVICES Mexico
USD 28m Loan
Companies and institutions do not only need financing. They also need to be assisted in implementing their projects, improving their environmental and social practices and in terms of governance. Since 2010, 44 countries around the world have benefited from PROPARCO’s technical assistance.
Developing responsible forest plantations
Proteak is a logging company specialized in the production of FSC (Forestry Stewardship Council) certified teak and eucalyptus. Its 19,000 hectares of plantations are located in Mexico, Colombia and Costa Rica. The project involves developing some 10,000 hectares of forest plantations which will have significant impacts on the socioeconomic development of the country: it will in particular develop the timber industry and create or maintain some 1,700 direct and indirect jobs. It will also promote the expansion of certified forests and the reforestation of degraded areas.
ENERGY & CLIMATE Guatemala
USD 1,7m
Equity investment
Lighting rural communities with low-cost solar energy
Over a billion people around the world do not have access to the electricity grid. In Guatemala, 300,000 households are not connected and use candles, kerosene or a power generator for lighting. Off-grid solutions, such as those offered by Kingo, provide an alternative that is less harmful to health and the climate, but also cheaper. These new economic models supported by PROPARCO make a substantial improvement to the quality of life of people who are often isolated. In addition, PROPARCO is supporting Kingo via a technical assistance line (USD 53 k) to develop an online training system for its employees and to strengthen its IT security.
USD 20m Loan
BANKS & FINANCIAL SERVICES Costa Rica
Supporting SME development
PROPARCO is assisting the bank Promerica in providing new loans to local SMEs, which account for over 90% of companies in Costa Rica, i.e. the bulk of the local economic base. This credit line will specifically contribute to supporting employment and the training of Promerica’s employees, but also the employees of the funded SMEs. 7,800 direct or indirect jobs should eventually be maintained or created by 2022.
USD 16m Loan
EDUCATION Dominican Republic
Promoting quality education With some 18,000 students registered, the Pontifical Catholic University Madre y Maestra (PUCMM) is the fourth largest in the country, with an integration rate of its students on the labor market close to 100%. In 2015, PROPARCO allocated a loan to PUCMM to finance the construction and equipment of a new Faculty of Health Sciences, and the expansion of the Faculty of Engineering. This financing contributes to the development of medical and paramedical training courses which are very much in demand, and more innovative programs in engineering (biomedical, mechatronics, renewable energies). It is AFD Group’s fifth loan to PUCMM. Indeed, PROPARCO has allowed it to build a professional technical center, teachers’ rooms, a school of architecture, a library and, more recently, to build its Faculty of Health Sciences and expand its Faculty of Engineering, while AFD has contributed to the policy for social inclusion, academic excellence and the internationalization of provision.
ENERGY & CLIMATE Jamaica
USD 109m Loan
Diversifying Jamaica’s energy mix With a USD 62m loan, PROPARCO is supporting the investment plan of the Jamaica Service Company (JPS), the only electricity distributor in Jamaica: financing of the rehabilitation and renewal of the generation infrastructure and transmission and distribution grids of JPS, as well as the implementation of a plan to reduce electricity losses and the construction of renewable energy infrastructure. In addition, with a USD 47.4m credit line allocated to the company EREC, PROPARCO is contributing to the construction and operation of the new solar park “Paradise Park”, which will be the country’s largest photovoltaic project.
INFRASTRUCTURE Brazil
USD 40m Loan
Promoting access to drinking water and sanitation To improve drinking water and sanitation services, the Brazilian authorities are seeking to mobilize USD 126bn by 2030 and involve the private sector more. In 2014, PROPARCO allocated a loan to Aegea to support its investment plan in four cities. The objective is to allow the private operator to increase drinking water production, as well as its wastewater collection and treatment capacity. This is providing a response to the water needs of populations and key sectors for Brazil, such as the agri-food industry and power generation.
ENERGY & CLIMATE Peru
USD 36m Loan
Developing renewable energies To assist Peru in its energy transition, PROPARCO has allocated a USD 28.8m loan to support the construction and operation of the Marcona and Tres Hermanas power plants, in southern Lima. This project will produce positive impacts on the climate with an estimated annual reduction of 428,000 tons of CO2 eq and on job creation. The electricity will be sold to the national grid for 20 years after the construction. In addition, another USD 7m PROPARCO loan to T-Solar group aims to build and operate two photovoltaic power plants in the Arequipa region, in the south of the country. These two power plants, with a combined capacity of 44 MW, are the first large-scale photovoltaic solar energy projects in Latin America.
We finance projects led by the private sector, which have a significant impact on local development. We provide our expertise to players engaged in a path to optimize their social and environmental performance.
PROPARCO OVERVIEW
COMPANY BRIEF EUR 5.2bn balance sheet at 31/12/2017 Standards & Poor’s: AA/A-1+ 220+ employees 12 regional offices around the world 80 countries of operation 450+ clients
OUR MANDATE
OUR ACTION
PROPARCO contributes to financing and supporting companies and financial institution in Africa, Asia, Latin America and the Middle East.
PPROPARCO focuses on key sectors for development: infrastructure with a focus on renewable energies, agro-industry, financial institutions, health, education.
OUR TOOLS
OUR ASSETS
• Loans • Equity • Quasi-equity • Investment funds • Guarantees • Technical assistance • Delegated funds
•M ulti-sectoral and geographical expertise • International presence • Financial strength (AFD Group) • A dvice for structuring complex projects • Mobilization of third parties • Risk management
NORTH AND SOUTH SHAREHOLDING STRUCTURE 65% Agence française de développement (AFD) 22% French financial institutions 11% International financial institutions 2% Companies 1% Ethical funds and foundations
The total is not equal to 100% due to rounding
CONTACT US LOCALLY MEXICO CITY Torre Omega: Campos Eliseos 345, piso 16 Chapultepec Polanco, Miguel Hidalgo 11560 Ciudad de México, Mexico City _PROPARCO_Mexico@afd.fr Tel. : +52(55) 9138 8953
HEADQUARTERS SANTO DOMINGO Av. Gustavo Mejía Ricart esq. Av. Abraham Lincoln, Torre Corporativo 2010, 2do piso, Local 201, Piantini, Santo Domingo viciniv@afd.fr Tel. : + 1 809 547 12 89
SÃO PAULO Edificio Çiragan Office Alameda Ministro Rocha de Azevedo, 38 11° andar, conjunto 1103 01410-000, São Paulo, SP, Brazil afdsaopaulo@afd.fr Tel. : +55 11 3149 7900
BOGOTA Sao Paulo Unit Av. Calle 82 # 10-33 Of. 302 110221 Bogota, DC Colombia jarroussea@proparco.fr Tel. : +57 1 621 32 99 Ext.34
PARIS 151, rue Saint-Honoré 75001 Paris www.proparco.fr proparco@proparco.fr Tel. : +33 1 53 44 31 08
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www.proparco.fr
September 2018 Editor: Proparco Design: Patrick Martin - Bluelife Photos credits: Neoen - Joseluis Franco for Proparco Alfredo Durante for Proparco - Sarah Caroline Müller for Proparco - Eduardo Muñoz for AFD