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Eligibility: A project must first demonstrate that there are no private sector financial institutions that can finance the project. Projects must contribute to the long-term growth of the host country's development, comply with environmental standards, and promote the use of clean technology. When the investment is made, the project's internal rate of return must be at least 15% in order to ensure a reasonable return on the capital invested and thus facilitate the liquidity of the shares held.
Types of Projects Funded: Proparco will consider investments in various sectors. Its focus is on projects that promote a stable and efficient economy, invest in health and education, and protect the environment. To be eligible for Proparco financing, a project must be located in one of the priority AfD countries. Information on Proparco's operating principles and strategies is available on the agency's website.
For examples of Proparco projects, see:
http://www.proparco.fr/en/projet_liste.asp
Financial Instruments:
Equity: Proparco will only take a minority holding in any project. The agency will keep its stake for an average of 6 years.
For more information on Proparco's equity operations, see:
http://www.proparco.fr/en/fonds_propres.asp
Loans: Proparco offers a variety of long-term loan instruments. The loans are denominated in Euros and U.S. dollars and have terms of up to fifteen years, with a capital repayment holiday of up to five years. Proparco will also offer loan guarantees on a limited basis.
For more information on Proparco's loan operations, see:
http://www.proparco.fr/en/prets.asp
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