King’s Town bank (First Year Implementation)

Commitment & Policy

To accelerate international alignment and the development of sustainable finance, and to guide enterprises in valuing environmental protection and social responsibility, King’s Town Bank officially signed the Equator Principles (EPs) and became a member of the Equator Principles Association on December 1, 2022. In 2023, we issued the “King’s Town Bank Equator Principles Financing Guideline” to provide internal procedures for handling credit cases subject to the Equator Principles review. The guideline covers the scope of application, core contents of the EPs, risk classification levels, and the credit assessment process.

Credit Assessment Process of EPs Cases

King’s Town Bank incorporates the Equator Principles into its credit assessment process. Each business unit and head office department conduct processes such as the EPs applicability check, risk classification, environmental and social risk assessment and review, submission and signing of contracts, and post-loan management.

Application

1. When a business unit accepts a credit case, the system will determine whether it is an Equator Principles case based on the input data. If it is, business unit must fill in the “Equator Principles Risk Check Form” to determine its risk level.
2. Depending on the risk level, customers are required to provide the information mandated by the Equator Principles.
3. For project-related refinance and project-related acquisition finance, the business unit should obtain the risk classification following the EPs, the environmental and social impact assessment documents, the commitment clauses of the Equator Principles, and the report of post-loan continuous monitoring.

Review and Assessment

1. The Strategy & Operations Department determines risk classification in accordance with EPs, and confirms the completeness of the provided documents.
2. The Credit Assessment Committee evaluates the environmental and social risks associated with the case based on the information provided and use it as a reference for approving or rejecting the credit case.

Contract Signing & Disbursement

1. After the case is reviewed and approved, the Compliance Department assists in incorporating environment and social commitment clauses into the contract.
2. Loans will be advances according to contract conditions

Post-loan Management

1. For cases classified as risk level A and high-risk level B, the system will automatically issue a reminder. The business unit needs to review these cases every six months, and ensure customers regularly submit environment and social monitoring reports.