Korea Development Bank: The First Korean Bank to Adopt the Equator Principles
Seoul, 02 January 2017
Korea Development Bank (KDB) announced its adoption of the Equator Principles, a globally recognized benchmark for determining, assessing and managing environmental and social risk in bank financed projects. As a first mover in the Korean finance industry to uphold environmental and social safeguards in project financing, KDB sets a standard for domestic institutions in promoting sustainable development and corporate responsibility.
KDB is the first bank headquartered in Korea to adopt the Equator Principles, joining a group of 87 financial institutions worldwide representing over 70 percent of international project finance debt in emerging markets. KDB’s adoption of the Equator Principles reaffirms its commitment towards sustainable finance and demonstrates a substantial progress in integrating international best practices into its fast-growing project financing business.
The Equator Principles are a voluntary set of standards that were developed by leading financial institutions in 2003, under the objective of ensuring that projects are developed in a socially responsible manner and reflect sound environmental management practices. The third edition of the Equator Principles which went into effect in 2013 extends its application from project finance and advisory services to project-related corporate loans and bridge loans.
Over the course of the year, KDB will refine and test its internal policies and procedures to ensure compliance with the Equator Principles. Such efforts are expected to strengthen the institutional risk management capacity and bring KDB closer to its financial partners that have already endorsed the Equator Principles.
KDB is a wholly state-owned bank that was founded with the purpose of supplying and managing industrial capital to expedite economic development in the Republic of Korea. As the nation’s leading financial institution, KDB has fostered growth and heightened competitiveness of Korea’s strategic industries by meeting their changing financial needs. KDB covers a variety of financing activities, including investment and corporate banking for promotion of industrial activities and expansion of social infrastructure.