PROPARCO - Société de Promotion et de Participation pour la Coopération Economique
151 rue Saint Honoré
75001 Paris Cedex 12
Tel: +33 1 53 44 31 08
Fax: +33 1 53 44 38 38
PROPARCO is a Development Finance Institution jointly held by Agence Française de Développement (AFD) and public and private shareholders from the North and South. Its mission is to catalyze private investment in emerging and developing countries with the aim of supporting growth, sustainable development and the achievement of the Millennium Development Goals (MDGs). PROPARCO provides funding on four continents encompassing the major emerging countries and the poorest countries, particularly in Africa. Its supports all manufacturing, infrastructure and service sectors, including financial services through a full range of long-term financial instruments. It encourages the development of sustainable businesses, banks and infrastructures with high level of requirements in terms of social and environmental responsibility. The rationale behind PROPARCO’s funding may be summarised in four keywords: Long-term involvement, additionally, profitability and innovation.
PROPARCO offers the full spectrum of private equity instruments, whether directly or through funds. The company always remains a minority investor. Portfolio companies include a wide array of industries, markets, company sizes and stages of development.
All lending products are available, such as junior or senior corporate and bank lending, as well as mezzanine finance. Loans may be denominated in euros, dollars and other currencies, on a case by case analysis. Their maturities range from 3 to 20 years with an average of 8-10 years. Grace periods may be granted up to one quarter of the final maturity.
Guarantees and risk-mitigating products
Off-balance sheet instruments such as guarantees and credit enhancement mechanisms, whose aim is to promote and leverage private capital flows, is another component of PROPARCO’s operations. They allow the mobilisation of long-term resources in local and foreign currencies. PROPARCO thus provides investors with a certainty on their financial return. Securitisation and structured finance vehicles are also a full component of PROPARCO’s range of instruments.
Proparco quarterly magazine focusing on the role the private sector plays in the development of low-income countries, particularly in Sub-Saharan Africa: Private sector and Development