MED-ENEC - Energy Efficiency in the Construction Sector in the Mediterranean

MED-ENEC -

External cooperation programmes - European Commission

Information:

Name of Financing Organisation: 
Agence Française de Développement (AFD)
Type of Financing Organisation: 
Government Organisation
Country: 
France
City: 
Paris
Type of Measures/ Technologies: 
Energy Efficiency
Mitigation activities
Renewable Energy
Countries eligible for financing: 
Algeria
Egypt
Japan
Lebanon
Morocco
Palestinian Territories
Syria
Tunisia
Eligible to: 
Banks
Other
SME
Type of Financing: 
Other
Financing range (EUR): 
Please check with the organisation
Description & Conditions: 
Applications process: AFD offers direct loans and loans through financial intermediation. For each financial operation, AFD will have to assess the creditworthiness of its borrower, and, when needed, to design a guarantee scheme adapted to the needs and possibilities of each specific project. The development of the business sector is supported through long term, non-sovereign concessional loans. These are direct loans to public or private entities, without State guarantee, on lent to final beneficiaries. Also guarantees to banks are offered providing loans to SMEs or micro-finance institutions, thus mitigating their risks. The ARIZ Guarantee Fund, managed by AFD, targets banks and microfinance institutions. In addition, AFD can accompany banks’ or companies’ bond issues by fully or partly guaranteeing the repayment of capital and /or interests. As a partner of the framework of the UFM, and in order to mitigate the effects of the global economic downturn, the AFD group has set up the FISEM, a 250 million € investment fund, which will provide financial support to SMEs via direct equity investments or investment funds. FISEM will also encourage the development of SMEs through investments in banks and industrial projects. The loan conditions will depend on the nature of the operation and its degree of economic and financial profitability. Loans are granted in € and local currencies (via TCX) at competitive rates, with a maturity up to 12 years – final conditions varying upon the economic environment and depending on each project. AFD loans are designed on the basis of floating interest rates. After full disbursement, the interest rate is normally converted into a fixed rate unless the client requests to keep the floating rates. In that case an interest rate cap has to be put in place, to guarantee permanent compliance with Official Development Aid eligibility. AFD financial products are untied.
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