BUSINESS OVERVIEW 2019 - Agence France Locale
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2019
BUSINESS
OVERVIEW
Greater Grenoble Metropolitan Area – Wood-fired co-generation plant
CONTENTS
04 ) EDITORIAL
05 ) A WORD FROM THE CHAIRMEN
06 ) HIGHLIGHTS OF 2019
08 ) KEY FIGURES FOR 2019
10 ) NEW MEMBERS IN 2019
Department of Essonne –
Departmental domain of Méréville 12 ) AGENCE FRANCE LOCALE GROUP:
A DUAL COMPANY GOVERNANCE
“The AFL is not just a financial
institution, at least not like any
other. It is true that Department of
Essonne’s involvement with AFL is
a supportive act because we need
14 ) LOCAL AUTHORITIES, OUR ONLY SHAREHOLDERS, OUR ONLY
BORROWERS
to diversify and add a meaningful
dimension to our financing sources.
Having a bank that belongs to the
local authorities in today’s world is
16 ) INCREASINGLY DIVERSIFIED ACCESS TO FUNDING
important, at least for the chairman
18 )
of the Department of Essonne.”
2019 RESULTS OF THE AGENCE FRANCE LOCALE GROUP
François DUROVRAY,
Chairman of the Department of
20 )
Essonne (91)
360 LOCAL AUTHORITY SHAREHOLDERS OF THE AFL GROUP
AT APRIL 30, 2020
BUSINESS PVERVIEW 2019
AFL 3
EDITORIAL
A WORD FROM
THE CHAIRMEN
2019 marked a new stage in AFL’s development in line with previous years: with more
than 60 new members, the bank had more than 350 local authority shareholders as of
end December. The model is dedicated to the “Engagement and Proximity” Act, allowing
new types of shareholders, non tax-raising groupings of local authorities and local
public entities to join the AFL Group. This marks true recognition of the success of our
development by the highest state authorities. 2019 was a busy year for local authorities. Through the Great National
Debate which followed popular street movements, a large number of
In a market environment marked by free-flowing liquidity generated by the quantitative our citizens expressed what they were expecting the public authorities to
easing policy of the ECB, Agence France Locale was able to raise resources amounting do in the face of economic and regional inequalities, the climate emergency and
to one billion euros from investors, under excellent conditions. So once again, we funded social malaise.
the projects of our member local authorities by producing credits of around one billion As local elected officials, we have fully played our role, alongside the State, in meeting
euros, i.e. nearly 3.5 billion euros loaned since the creation of AFL. Since our members these expectations and making our territories part of a virtuous path to make them
represent around 17% of the total debt stock of local authorities, we have an increasingly fair and sustainable places to live, factors of social integration, economic development,
significant role in financing French local authorities. employment and solidarity.
Each and every one of us is calling for strong action from the State in favor of
We know that the year 2020 is being hit by a major health crisis, the impacts of decentralization so that the regions are finally given the resources to meet these major
which, although difficult to gauge at this stage, will be significant for the country’s challenges.
economy. In terms of local finance, we know that the traditional methods of financing The State’s response took the form of several legislative texts, notably the act on the
local authorities will be undermined. In this context, our commitment is to continue orientation of mobility, the circular economy act and the act for Engagement and
deploying our model in order to build what must, in the long term, become the symbol Proximity. All of which are useful first steps that should hatch other projects!
of decentralization in our country. Among the measures taken, one in particular helped provide a response to a request
that we had been making for several months via our national associations of elected
More than ever and in accordance with the mandate defined by the local authority officials, i.e. to allow all of our local public investments to be eligible for financing by
shareholders, the world of local government can and will be able to rely on its bank, our bank, the AFL, regardless of the legal entity that carries them (local authority, EPCI
the AFL, to support local investment throughout the region, in both metropolitan and with or without separate taxation, local public establishment, etc.).
rural areas, in both peri-urban areas and the overseas territories, in both This is an additional stage that we have created for the bank’s development. A bank
Departments and Regions. that we wanted, in the image of our local authorities, transparent, agile and embodying
responsible finance and concerned about the interest of future generations.
The AFL was created in the aftermath of an economic Eleven local authorities signed the documents that created our institutions on October
and financial crisis. For almost 5 years, through its 22, 2013. Today, we have close to 400 shareholder local and regional authorities, which
constant development, it has shown its usefulness act as ambassadors for the financial autonomy of communities.
at a time when liquidity was free-flowing. Today, but The health crisis that we are going through in 2020 is going to deeply impact the
especially in future, it can show that it is indispensable. economic and social fabric of our regions. In the face of this crisis, we, the local
authorities, have a major challenge ahead of us, namely to promote as far as possible
the resurgence of activity nationwide.
Being able to count on the bank that we govern to support us, in a context where
our resources are limited and the traditional banking environment fraught with
Olivier Landel, uncertainties, is key.
Chief Executive Officer of Agence
France Locale – Société Territoriale Yves Millardet,
Chairman of the Executive
Jacques Pélissard, Mayor of Lons-le-Saunier, Chairman of the Board of Directors of Agence France
Board of Agence France
Locale – Société Territoriale
Locale
Richard Brumm, Vice-Chairman of the Lyon Metropolitan Area in charge of finance, Chairman of the
Supervisory Board of Agence France Locale
BUSINESS OVERVIEW 2019
AFL 5
HIGHLIGHTS OF
2019 JUNE
)B
oosted by its relationships with
the national associations of elected
authorities, the AFL is present at the
ANDAM, Villes de France and ANPP
Conventions.
)F
or the first time, AFL brings out a 500
million Swedish Krona (SEK) issue with
maturity at 15 years.
JANUARY
)S
ince it was founded, AFL has loaned over
2.5 billion euros to local authorities to
JULY - AUGUST Strasbourg city - Eco-quartier Danube Copyright @ SERS
finance their equipment.
)B
y welcoming 14 new authorities as
its members, including the City of
)T
he Occitanie Region joined
AFL, becoming the second
Strasbourg, AFL completes its 21st
capital increase.
NOVEMBER
French Region shareholder. )A
FL participates in the 102nd AMF
Claire Fita, President of the )A
FL meets associations of regional Mayors’ Convention.
Finance Committee of the Region leaders at the AATF and ADGCF
represents the local authority on Congresses. )F
or the first time, AFL brings out a 15
the Board of Directors. million Australian Dollar (A$) issue with
maturity at 10.5 years.
Occitanie Region
SEPTEMBER
FEBRUARY MAY )C
laire Sorrentini joins AFL as
Development Director.
DECEMBER
)A
FL welcomes 28 new authorities
)A
FL completes its 19th capital increase ) S &P gives AFL the AA- rating. A first )A
FL reaches out to authorities during during its 22nd capital increase, the
and welcomes 10 new member double rating for AFL and testimony to numerous events: Symposium, ISEFI, fourth in 2019, taking the total number
authorities, taking the total number of its development. Conference of Cities of Urban France, of authorities as shareholders to 352 as
local authorities as shareholders to over
APVF and AMRF congress, meetings at December 31, 2019.
300.
with elected authorities at the initiative
) The 4th annual Agency Day is held
of ADM 87 and ADM 64.
on May 23 at the General Meeting of )A
FL participates in the Regional
Shareholders, on the premises of FNTP. )A
FL joins in the 30th anniversary Meetings of Strasbourg.
MARCH ) A FL completes its 20th capital
of its Finnish counterpart Munifin.
Congresses. )T
he “Engagement and Proximity” act
is carried allowing AFL to broaden the
) A FL publishes its 2018 financials, which increase and welcomes 8 new member scope of its members to non-taxing
exceed the targets fixed with nearly 70
new local authorities as shareholders
and 830 million granted in loans.
authorities, including the municipalities
of Viry-Chatillon and Pré-Saint-Gervais. OCTOBER groupings of local authorities and local
public entities. A decree (published in
)S
ince it was founded, AFL passes May 2020) specifies the conditions for
the €3 billion mark for loans to local the membership of new shareholders.
) A ll of the national associations of
authorities.
elected local authorities request
expanding the scope of AFL members )A
FL hosts the OCBF Convention in
APRIL and aligning the prudential treatment of
local government debt with the French
Lyon, the dinner for which is organized
in the Townhall.
)F
inance Active publishes its Central Government.
annual study on the financing of )A
FL meets investors through several
local authorities in 2018 and sets ) AFL successfully completes its fifth roadshows in Eastern Europe and Asia.
AFL’s market share at 5.1%. «benchmark» bond issue for an amount of
500 million euros. With demand in excess
of 900 million euros, the investment is
completed with a margin of 32 bp against
French government bonds (OAT). Regional meetings of Strasbourg
BUSINESS OVERVIEW 2019
AFL 7
KEY FIGURES
FOR 2019
352 SHAREHOLDER AFL head and shoulders above
other banks. It is managed by local
authorities, mayors, presidents of
LOCAL AND REGIONAL AUTHORITIES regions, departments, etc., the result
being greater transparency with the
AS OF DECEMBER 31 2019 SPLIT : financial tools made available to us.
AFL also helps offer greater diversity in
our banking products. Finally, the 2008
) 2 Regions crisis showed us how some banks were
incapable of providing us with financing.
) 7 Departments We had to create our own facility in order
) 262 Municipalities to guarantee means to sustainably finance
our projects.”
) 2 Overseas communities Franck DUVAL ,
) 12 Méetropolitan areas DGA of Cherbourg-en-Cotentin (50)
) 5 Urban communities
) 21 Suburban communities
) 37 Municipality communities Municipality of Cherbourg-en-Cotentin
Quartier Grismenil - @Normandie Aménagement
) 4 Territorial public entities
60
LOCAL AUTHORITIES
became shareholders in 2019 5,3%
estimated market share in
€978 MILLION
in loans grantes by AFL in 2019
2019
40,5%
282 LOAN CONTRACTS CAPITAL OF NEARLY 30% of the French population
live in an AFL member local
market share among AFL
signed in 2019 180 MILLION members in 2019
authority.
pledged by the
170 LOCAL AUTHORITIES local authorities as
Our smallest member as at
borrowed from AFL in 2019 shareholder
17% December 31, 2019:
Juvrécourt (54) :
90 % percentage of local public
debt from AFL members as 61 inhabitants
the share of the consultations in which AFL was of December 31, 2019
involved in 2019 Our smallest loan in 2019 : Our largest member as at
December 31, 2019:
€13,000 €
€3.5 BILLION Our largest loan in 2019 : Region Occitanie :
in credit granted since 2015 €40 million 27 EMPLOYEES 5.8 millions inhabitants
BUSINESS OVERVIEW 2019
AFL 9
NEW MEMBERS “What has been important to us at Billom’s
municipal council is that we as a local authority
are participating in pooled financing. The fact
IN 2019 “The difference between AFL and other banks that the AFL was a grouping of authorities that
is the quality of the information they provide. created the equivalent to a banking organization
During our consultation for a long-term loan was behind our wish to be a part of it. In our
from four entities, two offers looked interesting municipality, we have a project we call «A
to us, but one was at variable interest rate. We Cluster in France», a project worth almost €6
appreciated your very attractively-priced fixed million. When we were looking for financing,
rate offer. This loan is intended to finance a we turned to AFL, which also provided us with
specific project, namely the construction of a other answers. We chose to work with AFL, in
new wastewater treatment plant needed by our particular for a loan of €1 million at 0%.”
municipality. But I believe that we have inter- Jean-Michel CHARLAT,
municipal projects for which a proposal could Mayor of Billom (63)
be made, I hope, in particular for financing the
completion of a footbridge to span the Moselle
river which borders our municipalities.”
Denis BLOUET,
Mayor ofCorny-sur-Moselle (57)
Municipality of Billom,
Through this membership, the Eglise Saint-Loup
Occitanie Region intends to
contribute toward establishing
the financial autonomy and equity
of local and regional authorities
under a united approach, for more
Municipality of Bayon– Village Centere
Occitanie Region transparent financing, in keeping “The first important thing for us is
TER
with its values.” the spirit of solidarity. The AFL is
an offshoot of local and regional
Carole DELGA, authorities. It seemed timely
Président of the Occitanie Region to move in the direction of
pooling financing systems. The “A bank created by local authorities, for local
AFL is not designed to create authorities and in which customers are members,
“At Saint-Louis-de-Montferrand, we hadn’t had seemed perfectly sound to me and it was
to resort to borrowing in a long while. But with wealth for specific interests.
The loan we took out was for obvious that we had to be a part of it. The loan
the current economic situation and the drop in of €700,000 that we contracted is intended
allocations, things were becoming financially making an investment of €1.3
million that we committed as part to finance part of the associative and cultural
complicated. The Association of Mayors of cluster that we are building at a cost of €3
Gironde put us in touch with the AFL, which of the restructuring of the entire
school district. We are a municipality million. Authorities must be strong enough to
conducted a quick-fire audit of our situation. be able to defend themselves on their own and
Then, we were very soundly supported and with sound management and treasury,
but to carry out other investments we thought avoid the classic financing pitfalls.”
advised. We felt like we were being
sponsored. We were eligible and voted for it would be wiser to contract a loan with an Bernard PLAT,
membership. Our municipality is located attractive rate of interest. Some might see it
Mayor of Rochecorbon (37) up unitl May 2020
in a restricted environment, because as a risk, but when you do the math the risk
we are in a flood zone. We cannot is extremely low. We believe that with all the
build, but we are renovating our municipalities that have already joined, we have
municipal buildings and we have sufficient financial clout to minimize the risk.”
chosen to rent a pretty house Jacques BAUDOIN,
in order to transform it into a
Mayor of Bayon (54) up until May 2020
media library. AFL’s financing
will let us complete this great
cultural project.”
Josiane ZAMBON, Municipality of Saint-Louis-de-Montferrand. Village Center
Mayor of Saint-Louis-de Municipality of Rochecorbon,
Montferrand (33) Lanterne
BUSINESS OVERVIEW 2019
AFL 11
AGENCE FRANCE LOCALE :
AGENCE FRANCE A CREDIT INSTITUTION
LOCALE GROUP :
A DUAL COMPANY GOVERNANCE ) I TS SHAREHOLDERS:
99.9% owned by La Société Territoriale
Nicolas Fourt – Deputy Managing Director of
ACOFI Gestion
Mélanie Lamant – Managing Director, Services
of Établissement Public Territorial (EPT) –
LA SOCIÉTÉ TERRITORIALE : Plaine Commune
A FINANCIAL COMPANY ) ITS
ITS MISSION : Olivier Landel – General Delegate of France
• Operational management of the AFL Group Urbaine and Chief Executive Officer of Agence
• Financing in the markets France Locale – Société Territoriale
) COMPANY SHAREHOLDERS : SAVOIE DEPARTMENT : Luc Berthoud -
• Granting of credit to member local and
Chairman of the Finance Committee Daniel Lebègue – Honorary Chairman
Exclusive ownership of member authorities, regional authorities of the Observatory on Corporate Social
shareholders owning 100% together: SEINE-SAINT-DENIS DEPARTMENT :
Municipalities, Departments, Regions, Public
Responsibility (ORSE, Observatoire sur la
Stéphane Troussel (up until March 5, 2020)
inter-municipal co-operation institutions (with Responsabilité Sociétale des Entreprises)
or without separate taxes), Territorial and local Rollon Mouchel-Blaisot – Prefect, Director of
MUNICIPALITIES: ) ITS
ITS GOVERNANCE :
public entities. the National Action Program City Center
MUNICIPALITY OF CONCHES-EN OUCHE :
Jérôme Pasco – Mayor BOARD OF DIRECTORS AT DECEMBER Carol Sirou – President of Safineia Advisors
) COMPANY
C
OMPANY MISSION : MUNICIPALITY OF GRENOBLE : Hakim Sabri -
31, 2019: LLC
• P
romotion of AFL Group (among local Deputy Mayor in charge of Finance s Richard Brumm – Chairman
authorities especially) and representation of
the interests of member local and regional
GREATER NANCY METROPOLITAN AREA : Jacques Pélissard – Vice-Chairman MANAGEMENT BOARD
authorities; Pierre Boileau – Deputy Vice-Chairman of Yves Millardet – Chairman of the Management
Lars Andersson – Founder of Kommuninvest
Finance Board
• Management of AFL Group membership;
Victoire Aubry – Member of the Executive Ariane Chazel – Head of Risk, Compliance and
•D
efinition of the AFL Group’s strategic LILLE EUROPEAN METROPOLITAN AREA :
Committee of Icade in charge of Finance, Control
trajectories; Michel Colin – Vice-Chairman for Public Policy
Legal, and Information Systems
•M
anagement of the twofold guarantee system Assessment, Financial and Management Thiébaut Julin – Chief Financial Officer
in place within the AFL Group Controls and Insurance François Drouin – Chairman of ETIFINANCE
LYON METROPOLITAN AREA : Karine Dognin-
Sauze - Vice-Chairwoman for Innovation,
) COMPANY
C
OMPANY GOVERNANCE :
Municipality of La
Smart Cities and Digital Development Possession, City Center
BOARD OF DIRECTORS MEETING OF STRASBOURG EUROPEAN METROPOLITAN
AREA : Caroline Barrière – Vice-Chairwoman
DECEMBER 31, 2019 for Budgetary and Financial Oversight Having a bank which truly belongs to local
JACQUES PÉLISSARD - Chairman authorities is a symbol of solidarity between
MUNICIPALITY OF ROQUEFORT-SUR- them. We were given a very warm and
RICHARD BRUMM - Vice-Chairman
SOULZON : Bernard Sirgue - Mayor sympathetic welcome. Being a local elected
official, I am not a finance specialist, the
REGIONS: TOULOUSE METROPOLITAN AREA : Sacha support given has been very educational. The
Briand - Vice-Chairman in charge of Finance rating sent to us is useful because it lets us
PAYS DE LA LOIRE REGION :
gauge ourselves and know where we are in
Laurent Dejoie - Vice-Chairman in charge terms of the state of our finances; each year
of Finance it helps us to try and make progress in the
GENERAL MANAGEMENT : management of our investments and debt.”
OCCITANIE REGION :
Olivier Landel – Chief Executive Officer Vanessa MIRANVILLE,
Claire Fita - Chairman of Finance
Yves Millardet – Deputy Chief Executive Officer Mayor of La Possession (974)
DEPARTMENTS :
ESSONNE DEPARTMENT :
Dominique Echaroux – Vice-Chairman in
charge of Finance
BUSINESS
RAPPORT OVERVIEW
D’ACTIVITÉ 2019 2019
AFL 13
13
THE GROUP’S RAISON D’ÊTRE
LOCAL AUTHORITIES,
OUR ONLY SHAREHOLDERS, “By creating the first bank we fully own and
manage, we, the French local authorities, have 978 MILLION
OUR ONLY BORROWERS taken a meaningful political step towards
decentralization.”
million in loans granted by
AFL in 2019
Extract from the manifesto of the local
shareholder authorities.
In 2019, in line with the Pacte Act, AFL’s Board
282
loan contracts signed in
352
of Directors wanted to launch a voluntary
process aimed at establishing a raison d’être 2019
CHANGES IN THE SCOPE OF the total number of
that formalizes and reasserts AFL’s DNA, as
defined by the founding authorities.
SHAREHOLDERS shareholder authorities
as at December 31, 2019.
170
local authorities borrowed
This approach, initiated during the year,
The Engagement and Proximity Act of December 27, from AFL in 2019
culminated in 2020 as the starting point
2019 broadens the base of entities eligible for AFL
60
for a more global project to strengthen the
membership and states that “local authorities, their
groupings and local public entities” can now join AFL.
establishment’s CSR approach.
90%
the number of new the share of the consultations
shareholder authorities The objective is to consolidate its commitments in which AFL was involved in
in 2019. in terms of sustainable development. This includes
2019
actions aimed at deploying the positive impact of
AFL in its internal operations, its responsible banking
missions, and also inside its governance.
2013 2019
The act governing the regulation Promulgation of the Engagement
and separation of banking activities and Proximity Act broadening the LONG TERM SHORT-TERM
The Group’s local and
base of eligible entities in the AFL. LOANS FACILITIES
created Agence France Locale. regional authority
shareholders are the sole
beneficiaries of the loans
offered by Agence France
Locale. AFL’s financing
Entities eligible for membership: New eligible entities: LONG-TERM offers meet all of the
» Regions » Non tax-raising grouping of local LOANS WITH financing needs of its
PROGRESSIVE BRIDGING
authorities LOANS shareholders.
» Departments CASH
» Local public entities OUTFLOWS
» Municipalities
» Tax raising groupings :
A decree published in May 2020
• Municipality communities specified the eligibility criteria of
• Suburban communities new AFL shareholders, the thresholds
applicable to the financial situation and Our local authority joined AFL in 2016. By
• Urban communities
the debt levels of any entity becoming a participating in its capital, our urban community
• Metropolis part of AFL’s capital after its publication. was able to benefit from nearly 23 million euros in
• Territorial public entities loans at competitive rates over the past four years,
whether for its main budget or for its water, sanitation
or transportation budgets. For the Urban Community of
Urban Community of Arras
Arras, AFL is a reliable player dedicated to financing local Espace Chanteclaire @CU
authorities so that we are able to successfully carry out our Arras @CU Arras
regional development projects.”
Pascal LACHAMBRE,
President of the Urban Community of Arras (62)
RAPPORT D’ACTIVITÉ
RBUSINESS 2019
OVERVIEW 2019
AFL 15
15“It is always useful to diversify sources of financing because we have
INCREASINGLY DIVERSIFIED lived through some difficult times in terms of access to financing
arrangements at the local authority level. AFL is geared toward
our expectations and needs; it is, therefore, important to go look
ACCESS TO FUNDING for this additional financing. I work in a regional public entity
of the Greater Paris Metropolitan Area with many projects that
focus mainly on regional development and urban renewal. We
estimate the overall financing need at 1 billion euros over the
next ten years.”
From the point of view of the sources of financing, 2019 was marked by the launch of seven Laurent BACQUART,
issues. They consisted of both public issues and private investments, denominated in euros Deputy Managing Director of the services EPT Greater Orly Seine
Bièvre (91 and 94)
and other currencies, some of which were new for AFL and with a wide range of maturities:
)O
n May 24, 2019, a fifth, 7-year, €500 )A
FL continued its strategy of diversifying Greater Orly Seine Bièvre, Extension line 15,
Greater Paris Express @EPT Greater Orly
million public issue was made at a margin its funding with private issues in Swedish
of 32 basis points over the OAT curve. krona (500 million SEK and Australian
With demand of more than €900 million
and over fifty participating accounts, this
dollars (15 million AUD) for the first time.
OUR INVESTORS
)F
inally, the AFL supplemented its
issue aroused investor interest. At the
program with several issues: in euros
BY GEOGRAPHICAL ORIGIN (2015-2019)
end of the year, AFL brought out another
(€50 million with a 10 year maturity; €75 Other
€190 million public issue by tapping the
million with a 15 year maturity) and in
June 2028 line.
dollars (100 million USD with a 2 year
maturity) Asia 3% Aa3 /P-1
12% 28% Rating Moody’s
France (most recent credit opinion: April 27,
2020)
Southern
Europe 7% Outlook stable
18%
20%
UK &
Germany, Austria &
More than ever, entrepreneurship spirit and On an average, the 2019 issue program was carried
Nordics 12%
Switzerland AA- / A-1+
Rating S&P
financing the local economy in a responsible out at a cost corresponding to a weighted margin of Benelux (most recent credit opinion: May 27,
way are priorities that we must support 31.6 basis points above the OAT curve and an average 2020)
with all our energy and resources. With its Outlook stable
maturity of 8.1 years. This ensures good backing of the
impressive development over the recent years,
balance sheet while controlling the cost of financing.
and its major role today in the financing of
regional and local authorities, Agence France
Locale strongly embodies those values. We
BY TYPE (2015-2019)
are very proud to support the development
of Agence France Locale as banking partner,
The highlights of the past financial year include most
notably the granting of a second rating for AFL, the
Corporates €957 MILLION
and more specifically as advisor on their Central banks & official raised on the bond market through
Group’s issuing entity, by Standard & Poor’s. Now, like institutions
recently established Sustainability Bond long-term issues in 2019
framework, which will facilitate the financing
its Dutch and Scandinavian counterparts, the AFL has
Banks & privates
of Environmental and Social long-term a high and equivalent rating from the two major rating banks 5%
investments by its shareholders. agencies, Moody’s Investors Service and S&P Global
26%
Ratings. Close to
31%
Felix ORSINI
Global Head of Debt Capital Markets
€4 BILLION
à la Société générale raised since the founding
of AFL
10% 28%
Insurers & Pension Asset managers
funds
RAPPORT
BUSINESS
D’ACTIVITÉ
OVERVIEW
2019 2019
AFL 17
17RESULTS OF THE AGENCE
Municipality of Huningue - Bank of Rhine @Huningue
FRANCE LOCALE GROUP
As of December 31, 2018, the AFL Group completed its fifth year of activity,
exceeding the objectives it had set and continuing the implementation of its
2017-2021 strategic plan at three levels:
(consolidated figures under IFRS)
) Continued strengthening of equity capital with memberships of new
local authorities as expressed by their new stake in the capital of Société
Territoriale;
Financials as of December 31, 2019 point to the local authority bank’s continued )T
he sustained and diversified increase in production of credit to member
development, which was driven by further growth in credit activity and a sustained pace local authorities;
of local authority memberships. Gross operating income amounted to -€503K, for net ) Continued diversification of the AFL investor base in the capital markets.
banking income of €11,106K.
The year 2019 saw another significant increase in AFL Group’s financials,
which are part of its growth trajectory, in line with its 2017-2021 strategic MAIN ITEMS OF THE CONSOLIDATED FINANCIAL STATEMENTS IN €K (IFRS)
plan. This improvement in financials reflects the good revenue
generation momentum generated by the AFL Group’s lending activity 2019 2018
since financial year 2015, when operations began, which is measured
in particular by the increase in the outstanding portfolio of credit Cash in hand, central banks and overnight 182,211 180,026
granted to local authority members. deposits
Securities 675,618 681,988
For the AFL group, the increase in outstanding loans and the Loans and receivables 3,160,500 2,229,911
control of expenses translated to a gross operating income of 4,036,974 2,996,909
Debt securities
-€503K under IFRS accounting standards
Equity 131,490 124,485
IFRS and a net income of -€1,186K after taking into account cost of
Net banking income 11,106 9,745
risk under IFRS 9, net losses on other assets and deferred tax assets.
Net interest margin – MNI 10,123 7,853
General operating expenses 11,609 11,049
Gross operating income -503 -1,304
Net banking income for the 2019 financial ) The administrative expenses, which Net profit -1,186 -1,705
year was €11,106K (compared to €9,745K amounted to €4,457K compared to
in 2018, a year that was characterized by €4,255K at 12/31/2018
non-recurring capital gains on the sale of It should be noted, however, that the
securities worth €1,637K). NBI for 2018 administrative expenses for 2019 take into
BREAKDOWN OF OPERATING EXPENSES IN €K (IFRS)
corresponded mainly to: account, on the one hand, the impact of
) A net interest margin increased in line the cancelation of the rent paid by AFL
with the outstanding loans to €10,123K under the application of IFRS 16 to rental 2019 2018
compared to €7,853K at December 31, contracts, which lead to a reduction in
2018, an increase of 29%; general operating expenses of €337K, General operating expenses: 11,609 11,049
) Gains of €500K from disposal of and on the other hand a provision of €71K Employee expenses 4,863 4,799
investment securities; toward repair costs, following the AFL’s Administrative expenses of which: 4,457 4,255
upcoming relocation from its current La
) Net result of hedge accounting - Information systems 1,586 1,532
Tour Oxygène offices.
information systems of €419K - Advisory 211 194
- Legal fees and rating 369 196
Finally, depreciation and amortization
Operating expenses were under control at - Custodian services
amounted to €2,289K compared to 234 202
€9,320K versus €9,054K in 2018
€1,995K at December 31, 2018, an increase - Promotion 327 244
These charges break down as follows: of €294K, mainly following the first - Taxes 533 506
) €4,863K in personnel costs (versus application of IFRS 16 with €258K of
Net depreciation and amortization 2,289 1,995
€4,799K in 2018). additional amortization of the right-to-use
asset rental by the Group
BUSINESS PVERVIEW 2019
AFL 19Bretagne Municipality of Waville, Municipality of Xures
Côtes-d’Armor (22) Meuse (55)
360 LOCAL AUTHORITY Municipality of Lannion Department of Meuse, Municipality of Pretz-en-
Argonne
Finistère (29)
SHAREHOLDERS OF THE AFL Brest Metropolitan Area, Municipality of Brest, Moselle (57)
Municipality of Lesneven, Suburban Community Municipality of Corny-sur-Moselle, Municipality
of Morlaix, Municipality of Plouvorn, Municipality of Jouy-aux-arches, Municipality of Metz,
Municipality of Morhange, Municipality of
GROUP AS AT APRIL 30, 2020
of Plouzané
Scy-Chazelles, Suburban Community of Val de
Ile-et-Vilaine (35) Fensch, Municipality Community of Warndt,
Municipality of Ferré, Municipality of Le Verger, Municipality Community of the Pays Haut Val
Municipality of Saint-Marc-le-Blanc , d’Alzette
Morbihan (56) Bas-Rhin (67)
Municipality of Saint-Armel, Municipality of Municipality of Mundolsheim, Municipality
Saint-Avé of Schiltigheim, Municipality of Strasbourg,
Auvergne-Rhône-Alpes Strasbourg European Metropolitan Area
Ain (01) Rhône (69)
Centre-Val de Loire Haut-Rhin (68)
Suburban Community of the Bassin de Municipality of La Mulatière, Lyon Metropolitan Indre (36) Municipality of Huningue, Municipality
Bourg-en-Bresse, Municipality of Pont d’Ain, Area, Municipality of Millery, Municipality Municipality Community of Levroux Region Community of the Pays de Rouffach, Vignobles
Municipality Community of Rives de l’Ain, Pays Community of Pays Mornantais, Municipality et Châteaux, Municipality Community of the
du Cerdon, Municipality of Sainte-Euphémie, Community of La Vallée du Garon, Municipality Indre-et-Loire (37) Guebwiller Region, Municipality Community of
Municipality of Thil, Municipality of Valserhône of Villeurbanne Municipality of Rochecorbon, Municipality of Sundgau, Municipality of Wittenheim
Tours
Vosges (88)
Allier (03) Savoie (73)
Loir-et-Cher (41) Municipality Community of Ballons des Hautes-
Municipality of Arfeuilles, Municipality of Municipality of Challes-les-Eaux, Municipality
Suburban Community of Blois – Agglopolys, Vosges, Suburban Community of Epinal,
Cusset, Municipality of Domérat, Municipality of Community of Coeur de Savoie, Municipality
Municipality of Vendôme Municipality of Voivres
Espinasse-Vozelle, Municipality of Saint-Marcel- of Corbel, Suburban Community of Greater
en-Marcillat, Municipality of Vichy, Suburban Chambéry, Municipality of La Motte-Servolex,
Loiret (45)
Community of Vichy Municipality of Montmélian, Municipality of
Motz, Municipality of Pont-de-Beauvoisin, Municipality of Gidy, Municipality of Pannes, Hauts-de-France
Municipality of Saint-Béron, Municipality of Municipality of Community of Plaine du Nord
Ardèche (07) Loiret Aisne (02)
Saint-Pierre-d’Entremont, Department of Savoie Department of Aisne
Municipality of Aubenas, Municipality
Community of Pays Beaume-Drobie,
Municipality of Bourg-Saint-Andéol, Municipality
Corse Nord (59)
Haute-Savoie (74) Municipality of Monacia-d’Aullène
of Chirols, Municipality Community of Rhône Annemasse – Les Voirons Suburbs, Municipality Municipality of Anzin, Municipality of Attiches,
aux Gorges de l’Ardèche, Municipality of Saint- of Combloux, Municipality of Étrembières, Municipality of Aulnoy-lez-Valenciennes,
Just-d’Ardèche Municipality of Saint-Julien-en-Genevois Grand Est Municipality Community of Cœur de l’Avesnois,
Municipality of Croix, Municipality of Cysoing,
Ardennes (08) Urban Community of Dunkerque, Municipality
Drôme (26)
Municipality Community of Val de Drôme
Bourgogne-Franche-Comté Municipality Community of Ardenne Rives de of Genech, Municipality of Landas, Lille
Meuse, Municipality of Aubrives, Municipality of European Metropolitan Area, Municipality of
Côte-d’Or (21) Foisches, Municipality of Hargnies Mons-en-Pévèle, Municipality of Montrécourt,
Isère (38) Municipality of Collonges et Premières, Municipality Community of Pévèle Carembault,
Municipality of Bourgoin-Jallieu, Municipality Municipality of Grosbois-en-Montagne, Municipality of Raimbeaucourt, Municipality of
Community of Cœur de Chartreuse, Municipality Municipality of Izier, Municipality of Longvic, Aube (10) Sailly-lez-Lannoy, Municipality of Saint- Saulve,
of Grenoble, Grenoble- Alpes Métropole, Municipality Community of La Plaine Dijonnaise, Municipality Community of Portes de Romilly- Municipality of Saulzoir, Municipality of Thun
Municipality of Saint-Pierre-d’Entremont Municipality of Tart sur-Seine l’Evêque, Suburban Community of
Valenciennes Metropolitan Area, Municipality of
Doubs (25) Meurthe-et-Moselle (54) Wavrin, Municipality of Waziers
Loire (42) Urban Community of Grand Besançon, Municipality of Anthelupt, Municipality
Municipality of Boën-sur-Lignon, Municipality of Municipality of Huanne-Montmartin, Municipality Community of Bassin de Pompey, Municipality
Bourg-Argental, Municipality of Saint-Sauveur- of Rigney of Bathelémont, Municipality of Bauzemont, Oise (60)
en-Rue, Municipality of Saint-Jean-Bonnefonds, Municipality of Bayon, Municipality of Municipality of Grandvilliers, Municipality
Municipality of Usson-en-Forez Jura (39) Bernécourt, Municipality of Bezange-la- of Noyon, Municipality Community of Pays
Municipality of Lons-le-Saunier Grande, Municipality of Bonviller, Municipality Noyonnais, Municipality of Plailly
of Bruley, Municipality of Bures, Municipality
Haute-Loire (43)
Saône-et-Loire (71) of Crion, Municipality of Croismare, Pas-de-Calais (62)
Municipality of Chadron
Municipality of Autun, Municipality of Chalon- Municipality of Dieulouard, Municipality of Urban Municipality of Arras, Municipality of
sur-Saône, Municipality of Cressy-sur-Somme, Flainval, Greater Nancy Metropolitan Area, Carvin, Municipality of Merlimont, Municipality
Puy-de-Dôme (63) Creusot Montceau Urban Community, Suburban Municipality of Hénaménil, Municipality of of Noyelles- sous-Lens, Suburban Municipality
Municipality of Billom, Clermont Auvergne Community of Greater Chalon, Municipality of Juvrecourt, Municipality of Laxou, Municipality of Pays de Saint-Omer, Municipality of Saint-
Metropolitan Area, Municipality of Clermont- Mâcon, Department of Saône-et-Loire Community of Mad et Moselle, Municipality of Augustin, Municipality of Rang-du-Fliers
Ferrand, Municipality of La Monnerie-le-Montel, Maixe, Municipality of Mandres aux Quatres
Municipality of Loubeyrat, Municipality of Tours, Municipality Community of Moselle et Somme (80)
Pontaumur, Municipality of Puy-Saint-Gulmier, Madon, Municipality of Montigny-sur-Chiers, Municipality of Amiens, Suburban Community
Municipality of Teilhède, Municipality of Youx, Municipality of Mouacourt, Municipality of of Amiens Metropolitan Area, Municipality of
Municipality of Riom Pagney-derrière-Barine, Municipality of Parroy, Rumigny
Municipality of Richardménil, Municipality
of Sionviller, Municipality Community of
Vézouze en Piémont, Municipality of Virecourt,
BUSINESS OVERVIEW 2019
AFL 21Haute-Garonne (31) Sarthe (72)
Île-de-France Nouvelle-Aquitaine Municipality of Aussonne, Municipality of Municipality Community of Huisne Sarthoise
Bagnères-de-Luchon, Municipality Community
Seine-et-Marne (77) Charente-Maritime (17) of Coteaux du Girou, Municipality of Flourens, Vendée (85)
Municipality of Bernay-Vilbert, Municipality of Municipality Community of Gémozac, Municipality of Larroque, Municipality of Municipality of La Faute-sur-Mer, Suburban
Chelles Municipality of Jazennes, Suburban Community Roquesérière, Municipality of Toulouse, Toulouse Community of Roche sur Yon, Municipality of
of La Rochelle, Municipality of Matha Metropolitan Area, Municipality of Villariès Saint-Hilaire-de-Riez
Yvelines (78)
Municipality of Meulan-en-Yvelines, Municipality Dordogne (24) Gers (32)
of Vaux-sur-Seine Municipality of Bergerac, Municipality of Municipality of Condom Provence-Alpes-Côte d’Azur
Beynac-et-Cazenac, Municipality of Château-
Essonne (91) l’Évêque, Suburban Community of Grand Hérault (34) Alpes de Haute-Provence (04)
Municipality of Brunoy, Department of Essonne, Périgueux, Municipality of Peyrignac, Municipality of Balaruc-les-Bains, Municipality Municipality of Allons, Municipality of Banon,
Municipality of Grigny, Municipality of Viry- Municipality of Saint-Martial-d’Albarède, of Pomérols, Sète agglopôle méditerranée Municipality of Mison
Châtillon Municipality of Vitrac
Lot (46) Hautes-Alpes (05)
Hauts-de-Seine (92) Gironde (33) Municipality of Castelfranc, Municipality of Municipality of Eygliers, Municipality Community
Municipality of Gennevilliers Municipality of Bordeaux, Bordeaux Duravel, Municipality Community of Vallée du of Guillestrois and Queyras, Municipality of Risoul,
Metropolitan Area, Municipality of Le Bouscat, Lot and Vignoble Municipality of Saint-Clément-Sur-Durance,
Seine-Saint-Denis (93) Municipality of Castillon-la-Bataille, Municipality Municipality of Saint-Crépin
Municipality of Blanc-Mesnil, Municipality of Créon, Municipality of Peujard, Municipality Hautes-Pyrénées (65)
of Clichy-sous-Bois, Municipality of Epinay- of Val-de-Livenne, Municipality of Saint-Louis- Municipality Community of Adour Madiran, Alpes-Maritimes (06)
sur-Seine, Territorial Public Establishment of de-Montferrand, Municipality of Saint-Pierre- Municipality of Provence-Alpes-Côte d’Azur Suburban Community of Cannes Pays de Lérins
Est Ensemble, Municipality of Livry-Gargan, d’Aurillac, Municipality of Saint-Romain-la-
Municipality of Montfermeil, Municipality of Virvée Pyrénées-Orientales (66) Bouches du Rhône (13)
Montreuil, Municipality of Noisy-le-Grand, Municipality of Pollestres, Municipality of Soler, Aix-Marseille Provence Metropolitan Area,
Etablissement public territorial Plaine Landes (40) Municipality of Théza Municipality of Marseille, Municipality of Peypin,
Commune, Municipality of Pré- Saint-Gervais, Municipality of Biscarosse, Municipality of Léon, Municipality of Puy- Sainte-Réparade
Municipality of Rosny-sous-Bois, Municipality of Municipality of Mimizan, Municipality of Pouillon, Tarn-et-Garonne (82)
Saint-Denis, Department de la Seine-Saint-Denis Municipality of Saint-Martin-de-Seignanx Municipality of Pollestres, Municipality of Soler, Var (83)
Municipality of Théza Municipality of Gonfaron, Municipality
Val-de-Marne (94) Lot-et-Garonne (47) Community of Pays de Fayence, Municipality of
Municipality of Bry-sur-Marne, Municipality Municipality of Casseneuil, Municipality of Saint- Pays de la Loire Roquebrune-sur-Argens, Municipality of Seillans
of Créteil, Territorial Public Establishment Maurin
Amiens Métropolis - electric buses- @Amiens Métropolis
of Grand-Orly Seine Bièvre, Municipality of )P
ays de la Loire Region Vaucluse (84)
Kremlin-Bicêtre, Municipality of Nogent-sur- Pyrénées-Atlantiques (64) Municipality of Merindol, Municipality of Pertuis
Marne, Territorial Public Establishment of Paris- Municipality of Guéthary, Municipality of Oloron- Loire-Atlantique (44)
Est-Marne et Bois, Municipality of Vincennes Sainte- Marie, Municipality of Pau, Suburban Municipality of Ancenis-Saint-Géréon,
Community of Pau Béarn Pyrénées, Municipality Municipality of Pallet, Municipality of Collectivités d’outre-mer
Val-d’Oise (95) of Saint-Etienne-de-Baigorry Loireauxence, Municipality of Nantes, Nantes
Municipality of Bessancourt, Municipality of Metropolitan Area, Municipality of Rezé, Réunion (974)
Gonesse, Municipality of Saint-Brice-sous-Forêt, Vienne (86) Municipality of Saint-Nazaire, Municipality of Suburban Community of Territoire de la Côte
Suburban Community of Val Parisis Urban Community of Grand Poitiers, Sorinières, Municipality of Vertou Ouest, Municipality of La Possession
Municipality of Ormes
Maine-et-Loire (49) Saint-Pierre-et-Miquelon (975)
Normandie Municipality of Beaucouzé, Municipality of Épieds, Overseas Community of Saint-Pierre-et-Miquelon
Occitanie Municipality of Lion d’Angers, Municipality of
Calvados (14) Saint-Augustin-des-Bois, Municipality of Saumur, Polynésie Française (987)
Municipality of Fontenay-le-Pesnel, Municipality ) Occitanie Region Suburban Community of Saumur Val de Loire Municipality of Bora Bora, Overseas Community
of Giberville of French Polynesia
Ariège (09) Mayenne (53)
Eure (27) Department of Ariège Municipality of Cossé-le-Vivien
Municipality of Conches-en-Ouche, Municipality
of Evreux, Municipality of Muzy, Municipality Aveyron (12)
Community of the Pays de Conches, Municipality Municipality of Roquefort-sur-Soulzon
Community of Roumois Seine, Municipality of “I think that for the first time, we have a tool that was designed by the authorities for
Saint- Pierre-des-Fleurs, Municipality of Saint- Gard (30) the authorities. We did it at a time when financing was in crisis, but the response is
Pierre-du-Bosguérard, Municipality of Thuit-de- Municipality Community of Cèze Cévennes,
l’Oison, Municipality of Vernon something we built together; today we have a truly great tool for our region. In the Amiens
Municipality of Comps, Municipality of Metropolitan Area, we have been a shareholder from the outset; the financing we receive
Estézargues, Municipality of Fournès,
Manche (50) allows us to carry out our investments. For example, we have set up a bus facility which
Municipality Community of Pont du Gard,
Municipality of Cherbourg-en-Cotentin Municipality of Roquemaure, Municipality of is a high-level service: 43 double buses, 100% electric buses, a project worth more than
Saint-André d’Olérargues, Municipality of Saint- 122 million euros. We are the first city in Europe to implement this technology. We have
Orne (61) Victor-de-Malcap, Municipality of Valliguières, commissioned the service on three of our trunk lines which serve the region. The goal
Municipality of Alençon, Urban Community of Municipality of Vénéjan is to gradually replace the remainder in pace with our financial capacity. And we will
Alençon
need to borrow again to facilitate mobility and service our populations.”
Seine-Maritime (76) Sébastien CAPRON,
Municipality of La Feuillie, Rouen Normandy
Chief Financial Officer of Metropolitan Amiens (80)
BUSINESS OVERVIEW 2019
AFL 23You are a local authority : You are an investor:
Philippe ROGIER Thiebaut JULIN
Chief Credit Officer Chief Financial Officer
04 81 11 29 32 04 81 11 29 33
philippe.rogier@agence-france-locale.fr thiebaut.julin@agence-france-locale.fr
Laurence LEYDIER Romain NETTER
Director of Local Authority Relations Director of Medium and Long-term Financing
04 81 11 29 37 04 26 07 60 91
laurence.leydier@agence-france-locale.fr romain.netter@agence-france-locale.fr
Astrée BOYET Maëlien BOREL
Local Authority Relations Officer Front-Office Operator - Medium and long-term
financing
04 69 84 81 02
04 26 07 60 90
astree.boyet@agence-france-locale.fr
maelien.borel@agence-france-locale.fr
Claire SORRENTINI
Development Director
04 69 84 81 09
claire.sorrentini@agence-france-locale.fr
www.agence-france-locale.fr
Agence-France-Locale @AgenceFRLocale contact@agence-france-locale.frYou can also read
