Ecobank Transnational Incorporated (2019)

Adoption Date: 01 Jan 2012
Region of Headquarters: Middle East & Africa
Current EPFI Reporting Year/Period: 2019
Institutional Reporting: Link to Report


Please read the important notes and disclaimer for further information on ‘EPFI Reporting’, compliance and publication on the Equator Principles Association 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: 0

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-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

Ecobank became a signatory and member of the Equator Principles Financial Institutions (EPFI) in 2012.

In the reporting year 2019, Ecobank did not carry out any Project Finance Advisory Service, Project Finance, Project Related Corporate Loan or Bridge Loan transactions that meet the Equator Principles eligibility criteria. The bank was involved in a few transactions with considerable environmental and social impacts on marine and land activities, but these transactions were not eligible for the EP criteria. For instance, the transaction involving a 125km road rehabilitation stretching from a coastal city to a middle belt savanna region in a West African country and 2 transactions involving construction of expansion and dredging activities of Ports in West Africa and Central Africa countries as well as another construction of office facility in another West African country to accommodate the teaming middle class population. The transactions involved rehabilitation and expansion activities and were not eligible in the EP criteria for a Project Finance and Project Related Corporate Loans, because these are regular banking transactions with either the value threshold and/or tenor limits below the EP specifications.

Nonetheless, in ensuring that the transactions were being carried out in an environmental friendly and socially acceptable manner, measures have been put in place that address any public health concerns in relation to air pollution from dust blows as well as community security and safety due to temporary inconvenience from the road traffic diversion. In this regard, a Monitoring Plan to facilitate sustainable management of the transaction activities, which also addresses the concerns of the affected key stakeholders have been agreed and being implemented. Therefore, the general EP guidelines and the standards set out in other globally recognised ESG frameworks such as the IFC Performance Standards on Environmental and Social Sustainability were duly considered in carrying out the necessary E&S due diligence.

In conducting the due diligence, Ecobank applies the EP standard, particularly Principle 1 to Principle 6 to all projects being supported by the bank. EP standard helps to establish the importance of the client (project proponent)’s existing E&S framework and capacity in addressing the risks and impacts of the project as well as compliance with the international and local environmental and social laws and standards. It also helps to establish the basis for ensuring that the client engages with the community and other concerned stakeholders through a proactive disclosure of relevant information for the review, discussion and evaluation by the stakeholder prior to the issuance of consent. Upon their consent, the client is also required to establish a grievance mechanism, where stakeholders and anyone that might be affected by the project activities at the construction and operation phases could lodge complains and seek redress.

Overall, the procedures for the identification and management of ESMS in Ecobank are being guided by the Ecobank Environmental and Social Risk Policy and Procedure manual (E&S Policy). The Policy was developed on the basis of our engagement with the IFC Performance Standards as well as our association with other Financial Institutions, including the African Development Bank (AfDB) on their interpretation of Environmental and Social Management as related to the Credit review. It set out the approaches for identification and assessment of environmental and social risks and impacts associated with projects supported by Ecobank. In so doing, the bank believes that the application of these procedures, by focusing on the identification and management of E&S risks, will support the bank in charting forward its corporate sustainability stewardship. It will also enhance non-discrimination, transparency, participation, accountability and governance in the project implementation framework.

It is worth noting that in the reporting year, Ecobank E&S Policy was revised and approved by the ETI Board. The revision was necessitated by the emerging E&S realities, such as the increasing concerns for the global mega trend issues such the climate change, human settlement and security, as well as pollutants with their possible adverse impacts on the business and operations in Ecobank.

The revised E&S Policy is to promote and ensure sound environmental and socially responsible banking across Ecobank by:
• Identifying and managing the E&S risk in Credit transactions.
• Transforming environmental and social risk into opportunities through application of E&S Assessment and E&S Due Diligence that add values to our clients, whilst providing sustainable competitive advantage for the bank, where possible.
• Supporting our clients to conduct their business in an environmentally friendly and socially acceptable manners, while helping Ecobank to chart forward its corporate sustainability stewardship.
• Building skills in environmental and social risk analysis and management, while grooming knowledgeable managers across the group in this regard; and
• Achieving superior shareholder performance through better environmental and social operations.

In carrying out the revision, the EP and other ESG frameworks offered the needed bench-marking information, which reflected Ecobank envisaged approach in addressing to the E&S management.

In light of the above, Ecobank remain committed to the implementation of EP conditions on eligible transactions.

Further information can be found here.