Promotion et Participation pour la Coopération Économique (Proparco) (France)

PROPARCO is the Investment and Promotions company for Economic Cooperation. Created in 1977, PROPARCO is a Development Financial Institution partly held by Agence Française de Développement (AFD) and private shareholders from the North and South. PROPARCO’s mission is to be a catalyst for private investment in developing countries which targets growth, sustainable development and reaching the Millennium Development Goals (MDGs). PROPARCO finances operations which are economically viable, socially equitable, environmentally sustainable and financially profitable. Its sectoral strategy is tailored to the level of a country’s development and focuses on the productive sector, financial systems, infrastructure and equity investment. PROPARCO invests in a geographical area ranging from major emerging countries to the poorest countries, in particular in Africa, and has high-level requirements in terms of Social and Environmental Responsibility. PROPARCO has a wide range of financial instruments to meet the specific needs of private investors in developing countries (loans, equity, guarantees and financial engineering). PROPARCO has  systematic impact measurement tools which are used to pre-select project financing and then throughout the project life. PROPARCO has a team of 150 people, 10 regional offices and is supported by 50 AFD Group agencies worldwide. For the 2010 fiscal year, the total amount of commitments (deals signed) for PROPARCO either through loans, equity and other securities reached €943.5M or 6% more than in 2009.   PRODUCTS & SERVICES PROPARCO's products are complementary to those of local or international private banks. Indeed, the mission of PROPARCO is to be niche player by providing financial products that are often neglected by the private sector. PROPARCO is a long term investor and provides a full range of financial products tailored to the specific needs of investors in Southern countries:   Investing in Equity Banks and businesses – faced with the problem of resources drying up – are seeking alternative financing. PROPARCO provides solutions by making equity or quasi-equity investments in the capital of businesses.   Supporting private equity investment PROPARCO is a forerunner in private equity investment in some regions. It provides long-term support to independent local fund management teams which galvanise private and public investment.   Medium and long term lending PROPARCO’s lending activity – like its equity activity – is based on long-term investment. The company supports responsible investors over the long term by tailoring products and repayment conditions to the constraints of its clients and the depth of the relevant market.    Developing products in local currency A great many projects require financing in local currency. Without such financing, clients have to face a foreign exchange risk that markets lacking sophistication sometimes simply cannot manage. The loan maturities on offer are also not long enough for the planned investments.