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E.SUN Commercial Bank, LTD (2023)
| Signing Date | 28 Dec 2015 |
| Region of Headquarters: | Asia-Oceania |
| Current EPFI Reporting Year/Period: | 2023 |
| Institutional Reporting: | Link to Report |
Please read the important notes and disclaimer for further information on ‘EPFI Reporting’, compliance and publication on the EP website.
Further information on this EPFI may be obtained through the Institutional Reporting hyperlink.
Project Finance Advisory Services
Total number mandated in the reporting period: 0
Project Finance Transactions
Total number that reached Financial Close in the reporting period: 7
| Equator Principles Category | A1 | B2 | C3 |
|---|---|---|---|
| Sector | |||
| Mining | |||
| Infrastructure | |||
| Oil & Gas | |||
| Power | 7 | ||
| Others | |||
| Region | |||
| Americas | |||
| Europe, Middle East & Africa | |||
| Asia Pacific | 7 | ||
| Country Designation | |||
| Designated Country 4 | |||
| Non Designated Country | 7 | ||
| Both | |||
| Independent Review | |||
| Yes | 6 | ||
| No | 1 | ||
| Totals | 7 | ||
1
Category A – Projects with potential significant adverse environmental and social risks and/or impacts that are diverse, irreversible or unprecedented.
2
Category B – Projects with potential limited adverse environmental and social risks and/or impacts that are few in number, generally site-specific, largely reversible and readily addressed through mitigation measures.
3
Category C – Projects with minimal or no adverse environmental and social risks and/or impacts.
4
Designated Countries are those countries deemed to have robust environmental and social governance, legislation systems and institutional capacity designed to protect their people and the natural environment.
Project-related Refinance & Project-related Acquisition For Project Finance
This information is required under EP4. EP4 applies for those transactions mandated after 1 October 2020 and that have reached Financial Close by the end of the period being reported.
Project Name Reporting For Project Finance (And Project-related Refinance & Project-related Acquisition Finance For Project Finance)
| No. | Project Name | Sector | Project Location(s) | Year of Financial Close |
|---|---|---|---|---|
| 1 | NFC I and II Green C Ltd. | Power | Taiwan, China | 2023 |
| 2 | Chuangwei | Power | Taiwan, China | 2023 |
| 3 | Leadway | Power | Taiwan, China | 2023 |
| 4 | Formosa Solar Renewable Power Group | Power | Taiwan, China | 2023 |
| 5 | Yiyang Green Power | Power | Taiwan, China | 2023 |
| 6 | Huahsuan Green Energy | Power | Taiwan, China | 2023 |
| 7 | Hong Luo Energy | Power | Taiwan, China | 2023 |
Project-Related Corporate Loans
Total number that reached Financial Close in the reporting period: 0
Project-related Refinance & Project-related Acquisition For Project-related Corporate Loans
This information is required under EP4. EP4 applies for those transactions mandated after 1 October 2020 and that have reached Financial Close by the end of the period being reported.
Implementation of the Equator Principles
E.SUN has long supported large-scale projects that contribute to social development. Since becoming one of the first domestic financial institutions to adopt the Equator Principles in 2015, E.SUN has participated in numerous large-scale project financings for electric power, infrastructure, and other sectors, both domestically and internationally. Furthermore, in line with the Equator Principles, E.SUN manages project financing risks hierarchically, carefully assessing whether the project development process fulfills environmental and social responsibilities, and properly formulating environmental and social impact monitoring and improvement plans. By adopting the EP4 framework, E.SUN assesses climate change, human rights, and biodiversity risks associated with the projects it finances and continues to refine its control process to strengthen post-loan management.
In accordance with the current Equator Principles, an Environment and Social Risk Team has been established consisting of a Chief Officer of Sustainable Finance Department (Senior VP) and three EP Specialists who undergo periodic training. The team primarily complete the following tasks:
- Manage internal assessment processes and related documents to comply with the Equator Principles and issue internal assessment reports.
- Conduct multiple training sessions for the RM team and relevant personnel.
- Continuously monitor Equator Principles information and communicate through meetings with EP members.
- Conduct post-lending management for Equator Principles cases and, together with the RM team, confirm the environmental and social risks and management plans of projects.
Below, here is an overview of the EP Implementation process within E.SUN BANK:
- When a new potential transaction is recognized by the RM team, they hand out the case information including the name project to the team which assigns a person in command to undertake a screening review: they determine either the project fall within the scope of the EPs, and if so, identify its category according to the EPs Principle 1. It utilizes all internal checklists as well as EP Guidance in order to assess each project in a structured manner.
- Confirmation by another specialist is necessary for each screening as a verification process. Should there be a disagreement, the team would then work together to reach a joint decision. Where necessary, it may also necessitate additional expertise to support this assessment.
- The team reviews the external Environmental and Social Due Diligence (ESDD) documents and writes a comprehensive internal report detailing the project’s specifics, categorization and a summary of key E&S risks along with their management strategies. This report is then submitted to the Credit Review Unit at headquarter for final loan approval by the Loan Review Committee, chaired by the CEO.
- Upon approval, covenants are finalized, obligating the client to comply by the Republic of China’s laws and regulations, the Environmental and Social (E&S) expectations outlined in the Equator Principles and their Action Plan. For projects with higher risk levels, the team will continuously monitor its progress. Should the project fail to meet the specified requirements and the client does not cooperate in implementing necessary improvements, the loan may be subject to be revoked.