First Abu Dhabi Bank (FAB) (2019)

Adoption Date: 20 Sep 2015
Country of Headquarters: United Arab Emirates
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: 2

Equator Principles Category A1 B2 C3
Sector
Mining 1
Infrastructure
Oil & Gas 1
Power
Others
Region
Americas
Europe, Middle East & Africa 2
Asia Pacific
Country Designation
Designated Country4
Non Designated Country 2
Independent Review
Yes 2
No
Totals 2
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. See list of Designated Countries.

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 Country(s) Year of Financial Close
1 GAC Bauxite Project Mining Guinea 2019
2 Jubail Export Refinery Project Oil & Gas Saudi Arabia 2019

Project-Related Corporate Loans

Total number that reached Financial Close in the reporting period: 1

Equator Principles Category A1 B2 C3
Sector
Mining
Infrastructure
Oil & Gas
Power 1
Others
Region
Americas
Europe, Middle East & Africa
Asia Pacific 1
Country Designation
Designated Country4
Non Designated Country 1
Independent Review
Yes
No 1
Totals 1
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. See list of Designated Countries.

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.

Project Name Reporting For Project-related Corporate Loans (And Project-related Refinance & Project-related Acquisition For Project-related Corporate Loans)

Number of projects that were not disclosed as per the disclosure conditions specified in Annex B of the Principles: 1

Under EP4, project name reporting is encouraged for Project-Related Corporate Loans that have reached Financial Close and required for Project Finance transactions that have reached Financial Close.

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

The Equator Principles form a core part of FAB’s sustainability framework, with screening tools incorporated into FAB’s credit policies and loan assessment forms. Internal checklists and guidance documents are in the process of being reviewed and updated according to EP4 to facilitate an understanding of the application of the Equator Principles and their implementation at FAB. The credit policies and processes have been updated to include the evaluation of transactions as part of a wider ESG risk awareness programme. The Equator Principles is managed by the Corporate Sustainability team at FAB, which includes environmental consultancy expertise. The team is responsible for ensuring sound implementation of the Equator Principles. The main responsibilities of the Corporate Sustainability team include:

• Providing advisory support and identification and categorisation of Equator Principles applicable loans
• Conducting ESG due diligence for Equator Principles applicable projects
• Providing training, guidance and recommendations to the product, coverage and credit teams
• Monitoring the ESG performance of Equator Principles applicable projects
• Annual reporting on Equator Principles performance

The Corporate Sustainability team is also responsible for the development and management of the FAB Group Sustainability and Environmental policies. As part of its policies, FAB commits to identify, evaluate and manage ESG risks in its lending portfolio and apply the Equator Principles.

The team responsible for submitting a credit application is required to make a preliminary assessment of the ESG performance of the relevant project and sponsor. Credit applications for transactions applicable to the scope of the Equator Principles are then directed to the Corporate Sustainability team for detailed evaluation and review. The team provides ESG guidance and support to the credit, product and coverage teams throughout the credit application process. The identified applicable projects are evaluated and categorised by the Corporate Sustainability team based on potential environmental and social risks and impacts. The team conducts detailed ESG due diligence for Equator Principles applicable projects and reviews relevant environmental, social or legal documentation. The ESG due diligence process includes monitoring project compliance with the identified mitigation measures and actions required to reduce the project’s environmental and social related impacts. FAB’s Corporate Sustainability team monitors compliance after financial close and over the life of the loan for all Category A projects, and appropriate Category B projects.

FAB’s Equator Principles implementation covers the year 2019 (1 January 2019 – 31 December 2019).
During 2019, 11 applicable Equator Principles projects went through the ESG due diligence process. Three projects have reached financial close.

Further information is available here.