By and for local authorities

AFL is a public development finance institution that provides tailored financing to French local governments to help them achieve their public policy objectives.

Created in 2013 by and for local governments, and with a recognized credit quality, AFL raises resources in a variety of currencies on the capital markets, passed on to finance local governments’ capital expenditures at low cost.

More than 40% of these expenditures contribute to the United Nations Sustainable Development Goals.

Who is AFL ?

Authorized by the Banking Separation and Regulation Act of July 26, 2013, AFL was created on December 17, 2013.

It was authorized as a specialized credit institution on January 12, 2015 and regulated by the Autorité de Contrôle Prudentiel et de Résolution.

It obtained the approval of the Autorité des Marchés Financiers for its EMTN program on March 6, 2015, which is renewed annually since then.

It was recognized as a public development credit institution by the Supervisory Board of the Autorité de contrôle prudentiel et de résolution (ACPR) on March 11, 2021.

What are the missions ?

AFL's unique mandate is to provide loans at attractive rates to French local authorities that wholly own AFL. It raises funds at the lowest cost on the markets, by pooling volumes and thanks to a solid financial structure.

Its objective is to eventually represent a 25% market share of the financing needs of French local authorities.

Overview of the French local authority areas of expertise:


Economic development
Public transport
High schools


Social care
Secondary schools

Vue aérienne d'une usine de traitement des eaux usées

Groupings of municipalities

Contributions to investments in public transport
Waste management
Power grid connections
Planning permissions etc.

Local public entities

Managing public services on behalf of local authorities in fields such as fire prevention, social care etc.


General duties at local level (mainly in the areas of housing, environment, primary schools etc.).

Credit characteristics

AFL does not distribute green, social or sustainable loans. As public shareholders, we chose to adopt a unique and simple offering that enables us to optimise the funding costs of our investments.

AFL regularly issues sustainable bonds designed to refinance the investments made by our regional authorities supporting the United Nations’ Sustainable Development Goals (SDGs). Channelling the budgets of local authority members has put he spotlight on three major investment areas (social services, energy and environmental transition, sustainable infrastructure) that fall under the responsibility of local governments.

Sustainable financing of AFL

Risks management and compliance, at the heart of AFL

AFL intends to conduct its lending activities to French local governments within a prudent mindset aligned with the practices of its sister entities in Northern Europe. Nevertheless, risk taking is inherent to banking. AFL has set limits to its financial strategy and risk appetite that provide safeguards for its activities.

Risks management and compliance

AFL governance

The AFL Group’s governance is based on a two-level structure, ensuring a separation of powers between the lending institution and its parent company with the aim of:
Preventing the risk of conflicts of interest within local authorities, which are both shareholders and borrowers;
Ensuring the accountability of all stakeholders through control mechanisms;
– Ensuring a very close relationship between strategic decisions and operational management.


Find out more about governance

Focus on CSR governance

Corporate responsibility is deeply rooted in our bank’s DNA and as such, CSR considerations are embedded within our decision-making process. Consequently, all governing bodies are involved in the governance of CSR issues as part of their duties.

Articles of Association
Agence France Locale's Articles of Association
Agence France Locale - Société Territoriale's Articles of Association
Shareholding Structure
AFL ST Shareholding Structure
Business and sustainable development overview
Business and sustainable development overview (2021)
Business and sustainable development overview (2022)

A strong commitment to society

AFL’s strategy in terms of responsibility and climate

AFL is committed to working alongside us, the local authorities, to lead the energy and social transitions that are coming and that are necessary.

To this end, it finances our investments at the best possible cost and deploys a responsible banking model that takes into account long-term issues, listens to our stakeholders and is fully aware of the challenges related to the climate and the planet’s shared and limited resources.

Find out more about ESG
Croquis d'une carte avec pins images dans certaine localisations en France

Our member local authorities

AFL’s shareholders include various regions, departments, metropolitan areas, municipalities and trade unions of all sizes, both in metropolitan France and in the French overseas territories.

Find out more about AFL’s financial situation and funding strategy.

Investors Relations area