Project Finance Group Client Alert: The Equator Principles: How Will The Revisions Impact You?

31 May 2013 - Milbank - Matthew Ahrens, Paul Murphy

The third revision (EP III) of the Equator Principles (EPs) will be launched on June 4, 2013, and it will affect applicable transactions signed on or after January 1, 2014. The EPs will continue to function in a substantially similar manner, but the EP III has, among other things, made the EPs applicable to a wider slate of transactions, expanded the scope of underlying review, and imposed additional disclosure and reporting obligations. Read More.

Equator Principles — EP III released

31 May 2013 - The Lawyer, Allen & Overy

On 14 May 2013, the Equator Principles Association announced the adoption of the revised Equator Principles (EP-III), which will take effect from 4 June 2013. If you are a financial institution that has adopted the Equator Principles (an EPFI) or a project sponsor that will be seeking finance for a project after 4 June 2013, you should be aware of the changes introduced by EP-III so that steps can be taken to integrate these requirements into existing environmental and social impact assessment and management systems at an early stage — avoiding delays in the financing process. Read More.

Equator Principles III Enters Into Force This June

28 May 2013 - Shearman & Sterling LLP, Christophe Asselineau et al

In the last 10 years, the Equator Principles or EPs have emerged as the industry standard for financial institutions to assess social and environmental risk in the project finance market. The EPs — which are based on the International Finance Corporation or IFC’s performance standards on social and environmental sustainability and the World Bank’s environmental, health and safety guidelines — have significantly increased attention on social/community responsibility, including as related to indigenous peoples, labour standards, and consultation with locally affected communities. Read More.

Equator Principles III released

24 May 2013 - Herbert Smith Freehills, Paula Hodges and Laurence Shore

The Equator Principles Association (EPA) has released the third version of the Equator Principles (EPs) for managing environmental and social risks in financing projects. They are largely the same as the draft EPs released for public consultation in August 2012 ... , but there have been some changes of which lenders and borrowers should be aware, particularly in relation to express exclusions of certain financial instruments from scope, relaxed public disclosure requirements, and human rights due diligence. The new EPs will come into effect on 4 June 2013, but the EPA will allow the previous version of the EPs to be used where the arrangement mandate is signed before the end of 2013. Read More.

EP needs to get to next level

21 May 2013 - Project Finance International

The third version of the Equator Principles, EP III, has been published following an extensive consultation exercise that looked at all the workings of the ... Read More.

Banco Popular Joins the Equator Principles

Madrid, 20 May 2013

Banco Popular has joined the Equator Principles, a voluntary set of guidelines for the inclusion of social and environmental criteria in the risk management process of Project Finance transactions of more than 10 million US dollars. These principles have been promoted by various entities from the financial sector in coordination with the International Finance Corporation’s (IFC) Performance Standards on Environmental and Social Sustainability.

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Updated Equator Principles released

16 May 2013 - Clifford Chance, Nigel Howorth, James Shepherd

Following a review of the Equator Principles (EPs), the Equator Principles Association has published the revised EPs, known as EP III, which will take effect from 4 June 2013. The revised EPs will apply to a broader range of financial products (beyond project finance). The other main changes are the inclusion of additional reporting requirements, additional obligations to analyse the greenhouse gas emissions arising from proposed projects and the inclusion of language addressing human rights. Read More.

Third Equator Principles Framework Agreed

16 May 2013 - Project Finance Magazine

The Equator Principles Association has agreed an update to its environmental guidance for project finance developments, seven years after its last amendment. The third version of the equator principles, to be formally launched on 4 June 2013, brings more deals under the scope of the framework and increases the reporting requirement for participants. Read More.

New 'Equator Principles' will extend environmental assessment to more project finance arrangements

16 May 2013 - Out-Law

A new version of the 'Equator Principles', which establish an environmental and social risk management framework for project financiers, will cover a wider range of funding arrangements. The third version of the Equator Principles (EP III) will take effect from 4 June, and should be applied to all new transactions from 1 January 2014. The new principles will apply to project-related corporate loans and short-term 'bridge' loans, in addition to project financing arrangements.  Environment and energy law expert Eluned Watson of Pinsent Masons, the law firm behind Out-Law.com, said that the new principles would have "important implications, risks and opportunities" for both lenders and those seeking financial capital for projects. Read More.

Equator Principles III approved

17 May 2013 - Lexology, Fasken Martineau DuMoulin LLP, Claudia Feldkamp, Kevin O’Callaghan

On May 14, 2013, the Equator Principles Association announced the adoption of Equator Principles III (“EP III”), the latest, and most robust, iteration of influential international norms for minimizing the negative environmental and social impacts of resource and infrastructure projects on local communities and environments. The adoption of EP III follows a lengthy consultation process that included a wide array of international CSR stakeholders and will formally take effect on June 4, 2013. Once in place, EP III will apply to all new infrastructure and resource projects financed by institutions that adhere to the Equator Principles (as well as expansions or upgrades of existing projects that create new significant environmental and social risks and impacts or change the nature or degree of an existing impact as originally assessed under EP II). Read More.