PRESS RELEASE
PROPARCO ACQUIRES STAKE IN GLOBAL CREDIT RATINGS
The emerging markets focused ratings agency, Global Credit Ratings (GCR) recently announced the
sale of a 10% equity stake in the company to Proparco, the private sector arm of the Agence
Française de Développement (AFD); the French state-owned Development Finance Institution.
GCR is currently responsible for over 60% of all ratings accorded in Africa, a market which they
believe to have great potential. GCR rates the full spectrum of security classes and has established an
unrivalled track record for ratings accuracy, as evidenced by an investment grade default ratio of only
0.9% over the past 10 years, which is the most accurate of any agency operating in emerging
markets. GCR CEO, Dave King, stated that the transaction was in line with their strategy to further
expand into French speaking Africa; an area where Proparco has a particularly strong presence.
Dave King believes that the tie-up with Proparco was an essential pre-requisite for the establishment
of a vibrant ratings system in the West and Central African Economic and Monetary Unions,
comprising 14 francophone countries. “The partnership with Proparco will not only enable GCR to
significantly expand its ratings coverage and market share in Africa, it will also enhance GCR’s
credibility in global capital markets”.
By investing in GCR, Proparco expects to help improve the provision of financial information and thus
contribute to improved efficiency of financial markets in Africa, a continent which remains a priority
for Proparco. Similarly, ratings can play a catalyser effect to attract foreign investment into the
region.
The AFD Group CEO and Chairman of Proparco, Jean-Michel Severino, who is currently in South
Africa as the signatory for three significant financial agreements as well as to further strengthen and
emphasize the AFD Group’s commitment to development in Southern Africa had this to say: “This
project falls within a category of operations targeting the enhancement of investments in Africa.
Proparco has completed various projects of this nature in Africa including liquidity guarantees for
listed vehicles in West Africa as well as guarantees of mutual funds in North Africa, allowing investor
to recover their capital while investing on local stock exchanges.
This partnership with GCR is one which will play an important role not only for Proparco but for the
AFD Group as a whole in promoting investment in Africa” concludes Severino.
ENDS
16 November 2009
Issued on behalf of Proparco, Global Credit Ratings and Agence Française de Développement
For any additional Information please contact:
Dave King
Global Credit Rating Co.
Local Expertise ∙ Global Presence
Tel:
Main +27 11 784 1771
E-mail: king@globalratings.net
Website: www.globalratings.net
Quinton Soper
Proparco Southern Africa
Groupe Agence Française de Développement
Tel:
Main +27 11 540 7100
E-mail:
soperq@afd.fr
Website: www.proparco.fr
Lunice Johnston
Siyenza Management
Proparco and Agence Française de Développement
Tel:
Main +27 11 463 9184
Email: lunice@siyenza.za.com
Notes to the editor
1. Proparco (www.proparco.fr) 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 and private shareholders from both the North and
South and are represented by 9 offices globally outside of their headquarters in Paris, making
annual commitments in excess of EUR 900 million.
2. Proparco’s mission is to be a catalyst for private investment in developing countries which
targets growth and sustainable development in attempting to achieve the Millennium
Development Goals (MDGs). Proparco finances operations which are economically viable,
socially equitable, environmentally sustainable and financially profitable. The Southern Africa
activities, which comprise a portfolio in excess of EUR 100 mln are managed out of
Johannesburg and are a significant contributor to overall commitments.
3. Historically, Proparco Southern Africa has been geared towards financial intermediation,
although in light of the recent financial crisis they have played an increasingly important role
as co-financier on various transactions: funds have been made available using a number of
financial instruments; including equity, credit facilities and tier II loans in local and foreign
currency to numerous local institutions.
4. Global Credit Rating Co. (www.globalratings.net ) can trace its origins back to 1996 when it
was established as the African Arm of the New York Sock Exchange-listed Duff & Phelps. Very
rapid growth followed and within only a short period the company had established itself as
the market leader. GCR’s African regional headquarters are based in Johannesburg, with its
main SADC, West, Central, and East African regional offices established in Harare, Lagos,
Lusaka and Nairobi respectively. GCR rates the full spectrum of security classes and its core
competitive advantage is based on the principal of “analytical excellence”. It employs the
largest team of rating analysts in Africa and is officially accredited in all markets in which it
operates (where such accreditation is a requirement). GCR accords both local currency
National Scale ratings, as well as International Scale ratings. Its shareholders include some of
the largest international Development Finance Institutions, including DEG (the DEG/KFW
group is AAA rated internationally and has own assets in excess of half a trillion US dollars)
and Proparco (also AAA rated internationally).
5. AFD is a public establishment that has been combating poverty, promoting development and
protecting the environment for over sixty years. AFD’s mandate for economic growth and the
preservation of the environment falls directly within the framework of the UN’s Millennium
Development Goals which seeks to reduce global poverty by half by 2015. AFD supports
projects that improve living conditions, contribute to economic growth and protect the
planet: getting children into school, supporting farmers, supporting small businesses, water
supply, preservation of tropical rainforests, combating climate change. For more information
visit: www.afd.fr or www.afd-afriquedusud.org