Export Credit Norway (2022)

The mandate of the Equator Principles Reviewers – responsibilities and staffing

The E&S advisors hold primary responsibility for the implementation of the EP. They identify transactions which fall within the scope of the EP, categorize the projects, review the E&S documentation and draft an E&S recommendation for all projects. Eksfin has implemented a risk-based approach and all long term transactions are categorized. As an export credit agency no distinctions are made between designated and non-designated countries..

For category A and high-risk B projects, the E&S advisor provides an E&S review based on the ESIA and an independent third party review. In the review process discussions on E&S impacts, mitigation and management measures are carried out with the client, the E&S independent expert and/or counterparts from other financial institutions where necessary. Site visits are undertaken when deemed necessary. Eksfin currently has three E&S advisors with extensive hands-on experience in E&S Impact Assessment, field surveys, and due diligence, and are organized within the institution together with the commercial teams at Eksfin.

The respective roles of the Equator Principles Reviewers, business lines, and senior management in the transaction review process

• The client executive conducts an initial project categorization to commensurate the E&S due diligence that will need to be conducted.
• The E&S advisor drives the EP transaction review process as per Eksfin’s procedures.
• The E&S advisor performs due diligence and validates the project categorization.
• The E&S advisor has the responsibility to provide their opinion on the opportunity to pursue the deal (with potential E&S conditions) or not.
• The Analysis Department evaluates and includes credit risks of E&S origin into the company credit rating, ensuring alignment with the E&S advisor.
• The E&S advisor supported by the E&S Advisory Team issues the recommendation to be included in the Decision Document to be presented to the Eksfin Credit Committee by the client executive.
• The Eksfin Credit Committee makes the final decision, alternatively the Eksfin Board.
• The Legal Department drafts loan and guarantee documentation (conditions precedent and monitoring of drawdowns, covenants, representations & warranties) working together with the E&S advisor.

The incorporation of the Equator Principles in the institution´s credit and risk management policies and procedures.

Eksfin’s Policy for Credit Risk guides credit risk management in Eksfin. It states that all transactions shall meet sustainability criteria in line with IFCs Performance Standards or similar. Equator Principles are specifically mentioned in the Eksfin’s Sustainability Policy, which commits Eksfin to comply with the Equator Principles. Further, Eksfin’s Policy for Risk Management and Internal Control states that risk management shall be an integral part of Eksfin’s strategy and business processes, including management of climate risk and sustainability risks.

Eksfin’s Guidance on Due Diligence describes due diligence according to the Equator Principles.

Further information about Eksfin´s policies is provided on their webpage: Eksfin.no