Itaú Unibanco S.A. (2021)

Adoption Date: 12 Aug 2004
Country of Headquarters: Brazil
Region of Headquarters: Latin America
Current EPFI Reporting Year/Period: 2021
Institutional Reporting: Link to Report - Link to Additional 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: 7

Equator Principles Category A1 B2 C3
Sector
Mining
Infrastructure 1
Oil & Gas
Power 1
Others 2 3
Region
Americas 4 3
Europe, Middle East & Africa
Asia Pacific
Country Designation
Designated Country4
Non Designated Country 4 3
Independent Review
Yes 3
No 1 3
Totals 4 3
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 STR02-2019 Power Colombia 2021
2 Hospital de Bosa Others Colombia 2021
3 Bodega 500A Others Colombia 2021

Number of projects that were not disclosed as per the disclosure conditions specified in Annex B of the Principles: 4

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

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

Since 2004, Itaú has been applying the Equator Principles management framework for all projects that fall under the framework criteria. This applies for projects originated in Brazil or it´s international units. Projects subjected to the application of the Equator Principles may require an independent consultancy to undertake social and environmental assessment before the signing off, disbursement and monitoring phases. Such independent assessment is mandatory for all high risk projects (Category A) and for some medium risk projects (Category B), if Itaú´s social and environmental risk team considers it necessary. For other medium or low risk projects the analysis is undertaken by the Itaú´s S&E Risk team. The analysis according to the criteria of the Equator Principles occurs throughout the tenor of the financing and is guided by international market best practices and focuses on our and our client´s efforts on engaging all stakeholders through a robust due diligence, ensuring notable technical expertise and high effectiveness of risk management. The due diligence is carried out before financial closing and conditions precedents are established to every single disbursement. The assessment process incorporates material and sensitive issues such as impact on traditional populations, climate change, and human rights, in accordance with the IFC Performance Standards, as well as assessing compliance with local legislation and the adoption of an environmental and social management system. Further, E&S Risk analysis comprehends the development and negotiation of an Action Plan with the client in order to ensure that the project complies with these standards. The monitoring phase of both Category A and B projects is always supported by an Action Plan. Some Category C projects also count with an Action Plan to address eventual gaps related to local environmental and social regulations identified during the initial due diligence. Everything is documented in the loan agreement. The Action Plan can be amended from time to time in order to fully reflect the current status of the project. Such revision occurs under the monitoring phase which happens at least annually until the tenor of the deal.

Further information on Itaú Unibanco’s implementation reporting is provided in their 2021 Integrated Annual Report (https://www.itau.com.br/relacoes-com-investidores/annual-report/2021/pdf/Integrated-Report-2021-Itau-Unibanco.pdf).