Agence France Locale was created further to the new banking legislation dated 26 July 2013 and was granted a banking license on 22 December 2014.
Agence France Locale is 100%-owned by French Local authorities which all have a tax-raising power. Its mandate is to raise cost-efficient resources in capital markets by pooling together the funding needs of all its member local authorities. Agence France Locale aims at providing French local authorities with alternative funding sources.
Agence France Locale is a Local Government Funding Agency (LGFA) which is well-recognised by international investors and has proved successful in Northern European countries.
The governance of the Agence France Locale Group is based on a dual company structure:
- Agence France Locale - Société Territoriale, 100%-owned by French member local authorities represents the shareholders, sets the strategic guidelines for the Group, appoints the supervisory board of its subsidiary and manages the guarantee mechanism;
- Agence France Locale, its subsidiary, is a credit institution which raises funds in capital markets and distributes vanilla amortizing loans to local authorities.