Our financing solutions for the private sector in the middle east

OUR FINANCING SOLUTIONS FOR THE PRIVATE SECTOR IN THE MIDDLE EAST

€ 525M committed since 2002

40

projects already funded

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 and financial players that actively contribute to the economic, environmental and social development of developing and emerging countries.

+17 years of operations in the Middle East

We finance companies and financial institutions whose activity contributes to creating jobs and decent incomes, providing essential goods and services, and fighting against climate change. Our operations thereby aim to strengthen the contribution that private players make to the achievement of the Sustainable Development Goals.

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

Access to essential goods and services: health, education, water, sanitation, electricity and telecoms

Strengthening the private sector’s contribution to the Sustainable Development Goals (SDGs)

8 Direct and indirect job creation The development of microfinance

7 13 Private sector initiatives for renewable energies and energy efficiency

RECONCILING ECONOMIC GROWTH, SOCIAL PROGRESS AND ENVIRONMENTAL BALANCES

CHALLENGES TO ADDRESS Since 2002, Proparco has been working with private players in the Middle East countries to support the local economic fabric and contribute to green and inclusive growth, in line with the mandate entrusted to AFD Group in these countries by the French authorities.

HOW? Proparco focuses its financing on strengthening the local productive base and job creation, in particular by supporting:  SMEs in economically promising

sectors that create quality jobs (industry, services);  access to quality health services

(modernisation of hospitals, creation of companies manufacturing equipment and materials or pharmaceutical laboratories for drug production...);

 private education provision, mainly

in higher education (creation of engineering schools...);  vocational training to allow young

people to acquire skills in line with labour market needs and facilitate their socio-professional integration;  the energy transition of countries

through renewable energy and energy efficiency projects.

OUR PRESENCE IN THE MIDDLE EAST

REGIONAL OFFICE MIDDLE EAST

Located in Beirut

Jordan, Lebanon, Palestine, Iraq, Syria and Yemen* LOCAL BRANCH

Jerusalem

* in line with France's action

OUR OPERATIONS

BY SECTOR OF ACTIVITY MULTI-SECTOR

ENERGY AND CLIMATE

37%

EDUCATION & HEALTH

3%

AGRIBUSINESS AND FOREST INDUSTRIES

3%

TELECOMS & TOURISM

11%

33%

BANKS AND FINANCIAL INSTITUTIONS

14%

The total is not equal to 100% due to rounding

A WIDE RANGE OF FINANCIAL PRODUCTS Without substituting for the offer of local or international commercial banks, but in complementarity, Proparco operates on market terms and through blended finance, in euros, in USD or local currency. Proparco offers three categories of financial products, which cover most of the needs of private sector financing in developing and emerging countries.  EQUITY FOR GROWTH

FOCUS ON SOME PROJECTS FINANCED SINCE 2002

 LONG-TERM LOANS G UARANTEES TO BOOST FINANCIAL

MARKETS

LOANS € 438M EQUITY € 86M

BUSINESS IN COMMON

84%

€ 9.4M Loan

AGRIBUSINESS AND SERVICES

16%

Palestine

Supporting the development of a date producer Nakheel is the largest Palestinian producer of "Medjool" dates for the local domestic market, but also for export: 60% of the production is exported.

This loan has allowed Nakheel to buy a farm of date palms and to strengthen its agro-industrial capacities.

This project will have significant impacts on local development since the company is directly and indirectly creating directly and indirectly hundreds of jobs.

SUPPORT TAILORED TO CLIENTS 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.

In addition to its 80 permanent employees, it employs more than 500 seasonal employees, including a significant number of women. 350 direct jobs will eventually be created.

With this financing, Proparco is signing its first project to support the Palestinian private sector. This investment by a leading financial institution such as Proparco is sending a strong positive signal to the market on the potential and bankability of the Palestinian private sector, which is penalized by the lack of long-term capital.

€ 31.5M Loan

ENERGY & CLIMATE Jordan

Diversifying Jordan's energy mix This loan to Fotowatio Renewable Ventures (FRV), a company specialized in the development of solar projects with more than 700 MW of installed capacity worldwide, is financing a 50 MW solar power plant in the Mafraq region. The electricity produced will be purchased by the national electricity company NEPCO at a very competitive rate and will contribute to Jordan's energy independence.

This project is thereby diversifying Jordan's energy mix, which is still largely dominated by fossil fuels, in a context of strong growth in electricity demand. The project is expected to provide access to electricity to some 70,000 Jordanians and avoid the emission of 80,000 t. eq-CO2 over the lifetime of the solar park. .

SOCIAL SERVICES, HEALTH, INFRASTRUCTURE

€ 13M Loan

Lebanon

Improving the diversity and quality of healthcare provision Faced with an often undersized public healthcare provision and insufficient public budgets, the private sector has a role to play in improving the accessibility and quality of care. In most developing countries, it accounts for 50% of healthcare.

It is for this reason that PROPARCO is supporting the development of private hospitals and clinics.

In 2012, Proparco funded the CareMed health group to support the development of the Lebanese hospital network.

This USD 15M loan has financed the construction of two hospitals and the renovation of a radiotherapy center. The introduction of state-of-the-art equipment has improved the quality of the management of chronic diseases. Finally, this funding has had a positive effect on access to a better quality of care and on the efficiency of the health system.

€ 30M

Equity investment

AVERROES III MULTI-COUNTRIES including the Middle East, North and Sub-Saharan Africa

Supporting private equity funds targeting SMEs Proparco's financing is contributing to the creation of Averroès Finance III, the successor to the Averroès Finance I and II funds of funds.

This fund mainly targets private equity funds focused on financing SMEs and mid-cap companies.

Averroès Finance III is the third fund of funds launched by Bpifrance Investissement and subscribed to by Proparco and Bpifrance Participations. Since 2002, Proparco and Bpifrance Investissement have established a solid partnership through the creation of two funds of funds, Averroès Finance and Averroès Finance II, aimed at supporting the development of SMEs in the Mediterranean basin through equity investments in regional private equity funds. The provision of financing to SMEs and mid-cap companies contributes to the development and revitalization of the local economic fabric, creating wealth and jobs.

WATER, INFRASTRUCTURE Jordan

€ 78M Loan

Promoting access to drinking water Disi Water Company, the Jordanian company responsible for the construction and operation of the Disi water pipeline, has benefited from a loan from Proparco to finance the construction and operation of a 340 km drinking water supply system between the fossil groundwater of Disi, in the south of the Kingdom, and the city of Amman.

The project makes it possible to provide a significant proportion of Amman's drinking water, thus improving the quality of service for Amman's 2.5 million inhabitants. The volumes planned by the project account for some 80% of current consumption in Amman. This operating and supply system has a lifespan of 50 years.

BANKS & FINANCIAL SERVICES Jordan, Lebanon, Algeria, Egypt, Morocco, Nigeria, Tunisia

€ 8.7M

Equity investment

Euromena III to support companies in the MENA region By supporting the EuroMena III generalist fund, Proparco is contributing to financing companies in the MENA region (Middle East / North Africa). EuroMena III is a USD 150 million investment fund designed to finance the growth of companies selected on the basis of their growth capacities, their potential for resilience to exogenous shocks and the barriers to entry they have developed. The fund particularly supports structures in their regional development.

Over the next 5 years, it plans to help create and maintain some 3,000 jobs and train and professionalize underlying companies, particularly on financial, environmental and social issues and the fight against money laundering.

It will have a catalytic effect on financing the fund's companies in order to pursue regional development strategies.

PROPARCO OVERVIEW

We finance projects led by the private sector that have a significant impact on local development. We provide our expertise to players that have set out on a path to optimize their social and environmental performance.

COMPANY BRIEF EUR 5.4bn balance sheet at 31/12/2018 Standards & Poor’s: AA/A-1+ +300 employees 13 regional offices and 8 local branches around the world 115 countries of operation

OUR MANDATE

OUR ACTION

Proparco contributes to financing and supporting companies and financial institutions in Africa, Asia, Latin America and the Middle East.

Proparco focuses on the key development sectors: infrastructure, especially for renewable energies, agribusiness, financial institutions, health, education.

+500 clients

NORTH AND SOUTH SHAREHOLDING 74% Agence Française de Développement (AFD) 12% French financial institutions 11% International financial institutions 2% Companies 1% Ethical funds

OUR TOOLS • Loans • Equity • Quasi-equity • Investment funds • Guarantees • Technical assistance •D elegated funds and foundations

OUR STRENGTHS •M ulti-sectoral and geographical expertise • International presence • Financial strength (AFD Group) • A dvice on structuring complex projects • Mobilization of third parties • Risk management

CONTACT US MIDDLE EAST REGIONAL OFFICE

LOCAL BRANCH OFFICE

HEADQUARTERS

BEIRUT Ambassade de France au Liban Espace des Lettres, Rue de Damas Beirut LEBANON Tel.: +961 (0)1 420 190 afdbeyrouth@afd.fr

JERUSALEM 7, rue de Nablus – Sheikh Jarrah 66717 Jérusalem, PALESTINE Tel.: +972 2 540 0423 afdjerusalem@afd.fr

PARIS 151, rue Saint-Honoré, 75001 Paris, France Tel.: +33 1 53 44 31 08 www.proparco.fr proparco@proparco.fr

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November 2019 Editor: Proparco Design: Patrick Martin - Bluelife Photo credits: Proparco, Lucie Hage-Chahine, Nakheel Palestine, Iskander Ezzerelli, iStock