BUSINESS REVIEW AND SUSTAINABLE DEVELOPMENT REPORT Photo: Brest Metropolitan Area (29) - Cable car Cable - (29) Area Metropolitan Brest Photo: THE BANK THAT CHANGES BANKS The suburban community of the Bourg-en-Bresse basin is made up of 74 municipalities and 135,000 inhabitants and covers an area of 1,236 square kilometers. The local authority's objective is to forge regional solidarity, particularly with the least privileged municipalities. Against a constrained economic backdrop, the suburban CONTENTS community of the Bourg-en-Bresse basin adopted its original budget with two objectives: to ensure a recovery and the ecological transition. EDITORIAL P.4 Three reasons justified the AFL's CA3B membership. The first is budgetary : we are convinced by the AFL A WORD FROM THE CHAIRMEN P.5 model whose rating, which is essentially linked to that of the French State, guarantees competitive borrowing rates. The second is prospective: if a new financial A BANK THAT EMBODIES THE VALUES crisis occurs, we know that unlike traditional banks, OF LOCAL COMMUNITIES P.6 AFL, which only lends to local authorities, will remain a sound source of financing. Finally, the third reason A UNIQUE GOVERNANCE MODEL P.8 is solidarity: the more members AFL has, the more robust and attractive it will be for investors and the HIGHLIGHTS OF 2020 P.10 more modest municipalities will be able to benefit from its services. A SHORT-CIRCUIT BANK P.12 In addition, we are also keenly watching the work of AFL A BANK COMMITTED TO REGIONAL DEVELOPMENT to promote sustainable finance. THAT IS INCREASINGLY SUSTAINABLE P.14 The flagship project of the mandate is undoubtedly the redevelopment of the Plaine Tonique camping site and A BANK THAT EMBODIES SUSTAINABLE FINANCE P.16 recreational area in Montrevel-en-Bresse. But the suburban community also plans to rehabilitate the Ferme de la Forêt in A BANK THAT SHARES ACCESS TO THE BOND MARKET Saint-Trivier de Courtes, the continuation of the “La Traverse” FOR ITS MEMBER AUTHORITIES P.18 project for a green path for cycling and walking along the old railway line and the inauguration of the suburban community's conservatory.” A COMPANY CONCERNED ABOUT ITS SOCIAL AND ENVIRONMENTAL IMPACT P.20 Mr. Jean-François Debat - Chairman of the suburban community of the Suburban community Bourg-en-Bresse basin (01) of the Bourg-en- A BANK THAT IS FINANCIALLY BALANCED P.22 Bresse basin (01) – Development of a bike path Located 31 kilometers east of Tours, the municipality of Francueil now has a population of 1,410. In 2020, we decided to accelerate the process of “The municipality of Planzolles is located in the Cévennes foothills of the refinancing our debt, for which the average rate seemed particularly high. We Ardèche, where 139 inhabitants live year-round. After several years became acquainted with AFL, which very quickly won us over not only by of discussions and several investments, we decided to launch a the quality of its proposals, but also by the approach and follow-up that were project to revitalize the town's center. proposed. To do this, we chose to create a dynamic space where people For me, being an AFL ambassador gives me the opportunity to promote a can meet and socialize, featuring a hostel with its own bistro bank that is not yet well-known, especially in my department of Indre et Loire, and a business with a multi-service area. In addition, in and to offer my own experience by sharing the quality of AFL’s approach, view of a real growing demand for accommodation, we are from the start of the operation with a relevant analysis of the local authority’s going to create a vacation rental house for groups that can financial situation, then proposals for work and adapted products to transition accommodate at least 18 people. This project will not only towards long-term follow-up and advisory services. create jobs but it will also reforge social bonds by involving all Our project in the town's center is a reserve of approximately three hectares generations in the municipality's community life. With the plans of land that we are planning to develop with the aim of building housing that for the project already set, work was able to start in March 2020, Municipality of harmoniously dovetails the town's quality of life." and the AFL membership meant that we could finance it. Francueil (37) Construction of social housing Mr. Christophe Deffreix Mayor of the municipality of Planzolles (07) Municipality of Planzolles (07) Mr. Pierre Ehlinger - Mayor of the municipality of Francueil (37) Location of the future vacation rental house BUSINESS OVERVIEW 2020 AFL 3 EDITORIAL A WORD FROM THE 2020 will remain a historic year in many ways for local authorities and for AFL, the bank they created. Marked by the Covid-19 health crisis, the priorities CHAIRMEN of french local authorities and how they operate have been disrupted. AFL has endeavored to adapt its organization as quickly as possible to continue pursuing its mission: that of meeting the needs of its member authorities. The health crisis that we have been experiencing since the In this context that is extremely difficult for everyone, there are three beginning of 2020 has had a profound impact on what is at highlights for AFL: the heart of our regions: the daily life of our fellow citizens, our local economic, social and cultural fabric, but also the The first is the fact that we have taken the responsibility and sustainability organization of public services and local democratic life, inherent to our model a step further and designed as such since AFL's notably with the postponement of municipal elections. inception. The integration of the Company’s purpose in the Articles of In this context, our local authorities have stayed the Association, validation of values, the development of new areas in which course. Taking on the responsibility of the daily impact of Jacques Pélissard we can engage with our shareholders, the first issue of sustainable bonds, the health crisis up to the vaccination campaign, but also The creation of AFL was a very important bolstering AFL's exemplary reputation as a company (remote working, the necessary economic recovery through investment. political fight that I led as Chairman of the soft mobility, the right to disconnect from work, gender equality, electronic This situation had a different impact on the finances of French financial markets authority (AMF) signature of documents, etc.), numerous projects have been carried out to with all the chairpersons of associations local authorities: a drop in revenue, increases in expenses, of elected local representatives, and further consolidate AFL’s social responsibility, which has been present since postponed investments, and changes in cash flow. Each it is an honor to have helped, over the the very beginning. local authority faced unforeseen events during the year, course of several years, defend the The second is the achievement of a financial balance in AFL’s statement of but we, the representatives of local communities, proved interests of French local authorities by to be resilient. chairing this bank, which is theirs. I am financial position. Business was buoyant in 2020: 59 new members, €1 billion very happy today to pass the torch to an in loans granted over the year, more than €1 billion raised on the markets With a budget of €1.5 billion in loans over 12 months, Agence elected representative who shares these under very good conditions, €203 million in capital contributions voted France Locale was able to meet the local authorities' convictions." by local shareholder authorities… the bank of local authorities is becoming expectations, whether for short-term or longer-term needs. increasingly involved in the financing of local public investment. As a partner of ANCT, the French national agency for Pia Imbs, Chairwoman of regional cohesion, our bank is therefore a major player The third is the continued development of AFL thanks to the expansion of the Strasbourg European in the financing of the various national programs and the the shareholder base allowed by the “Commitment and Proximity” law and Metropolitan Area, Chairwoman recovery and ecological transition contracts. the publication of the related decree in May 2020. AFL was able to integrate the Board of Directors of AFL-ST The ecological transition, which is at the heart of the the first inter-municipal joint local and regional authorities, six in total for since March 2021. local authorities' concerns, can now be refinanced in a the year 2020 including Tisséo, the Toulouse suburban community’s sustainable manner through the specific loans that AFL I am honored by this appointment joint mobility authority. This currently offers new funding opportunities and by the trust the Board offers its members in an innovative process with few to local authorities that have organized some of their skills through joint members have in me. More than ever restrictions for local authorities. in this context, AFL embodies the authorities, and in the future, it will open up new funding Let us never forget the purpose of the AFL, which we renewal of public action and solidarity to all local public institutions. have included in our Articles of Association: "embody between local authorities. It is also a genuine tool for decentralization: its While the health crisis is synonymous with uncertainties responsible finance to empower local communities' ability legal structure enables it to perform at the local level, the member authorities can more to meet the present and future needs of their residents". well in the markets, while providing than ever count on the bank they created to support AFL’s activity is intended to optimize public spending in the elements of security necessary for them in their regional and local economic recoveries.