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Mian Yang City Commercial Bank (2022)
| Signing Date | 20 Jul 2020 |
| Region of Headquarters: | Asia-Oceania |
| Current EPFI Reporting Year/Period: | 2022 |
| Institutional Reporting: | No Report Available |
Please read the important notes and disclaimer for further information on ‘EPFI Reporting’, compliance and publication on the EP 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: 4
| Equator Principles Category | A1 | B2 | C3 |
|---|---|---|---|
| Sector | |||
| Mining | 1 | ||
| Infrastructure | 3 | ||
| Oil & Gas | |||
| Power | |||
| Others | |||
| Region | |||
| Americas | |||
| Europe, Middle East & Africa | |||
| Asia Pacific | 4 | ||
| Country Designation | |||
| Designated Country 4 | |||
| Non Designated Country | 4 | ||
| Both | |||
| Independent Review | |||
| Yes | |||
| No | 4 | ||
| Totals | 4 | ||
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.
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 | Project Location(s) | Year of Financial Close |
|---|---|---|---|---|
| 1 | sewage pumping station construction project | Infrastructure | China | 2022 |
| 2 | Ultramicro non-metallic new material manufacturing | Mining | China | 2021 |
| 3 | Hydropower station water intaking hub and water damaging repair project | Infrastructure | China | 2021 |
| 4 | Water conservancy project construction | Infrastructure | China | 2021 |
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
Equator Principles Implementation Report
1 January 2022 to 31 December 2022
- MYCCB adopted the Equator Principles in July 20,2020.This document aims at explaining how the Equator Principles have been incorporated into MYCCB´s internal policies and procedures.
- Roles and Responsibilities
MYCCB’s Management Mechanism for EP including 3 levels:the Credit Review Board, The Business Management Department,Green Finance Office.
The Credit Review Board decides whether the projects meet the EP requirements and provides recommendations.The Business Management Department is an institution of MYCCB headquarter, which in charge of identifying the projects that fall within the scope of the Equator Principles.The EP reviewers within The Business Management Department determine a project´s risk category and advise clients on the assessments and reviews that need to be done, and on the EP requirements that need to be met to comply with the EP. Projects within EP scope that support green, low-carbon and circular economy are given priority. EP reviewers review whether the projects comply with the EP requirements. The Business Management Department responsible for monitoring post-loan implementation and compliance.
As part of its overall Green Finance strategy, MYCCB created a Green Finance Office. The Green Finance Office is responsible for incorporating the Equator Principles into MYCCB´s policies and procedures. As part of the Green Finance Office, the Green Credit Unit is responsible for ensuring that projects that fall within the EP scope comply with the Equator Principles.
- Implementation
Front officers 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 Environmental and Social documentation (due diligence report where applicable or other documentation received from the client) and draft a Project Evaluation Report on the Application of equator principles (including the content of E&S evaluation ) for all projects.
A detailed review by internal E&S experts is required for all projects categorized A or B. More than 10 experts with hands-on experience on E&S Impact Assessment, field surveys, and due diligence, are integrated in E&S advisory teams in the different branches of the bank. The internal E&S experts provide a second E&S review and engage in discussions over E&S impacts, mitigation, management measures with the client, the E&S independent expert or counterparts from other financial institutions where necessary. They may also visit the project site. As a result, it is compulsory that the internal E&S experts provide their opinion on the opportunity to pursue the deal or not. This applies to lending and financial advisory operations.
Middle Officers are responsible for controlling that legal documentation is in line with the decisions and for the
monitoring of EP clauses.
Other internal experts in the Credit Management Department are responsible for monitoring post-loan implementation and compliance.
3. Evaluation
According to the EP, the client is required to conduct an E&S assessment of the proposed project (category A and category B), propose measures demonstrating how adverse impacts and risks are mitigated and monitored, disclose information and consult with communities affected by the project, and establish a grievance mechanism, as appropriate. Clients are also explicitly expected to include assessments of climate transition and physical risks as well as potential adverse human rights impacts.
MYCCB encourages lenders to hire an independent E&S consultant and establish a grievance mechanism ,which are involved to assess the project’s alignment with EP requirements and verify monitoring information for all category A and appropriate category B projects.
Also, with the assistant by independent relevant expertise,MYCCB makes its own evaluation of how the steps taken by the client fulfill the EP requirements,and integrates EP covenants in the documentation and reports annually on the processes and projects.
- Preparation and Training
During the time of EPFI application, The Green Finance Office are responsible for dealing with applying and other affairs related to EP Association.
Since joining the EP Association in July 2020, the bank has organized three EP training sessions for 6200 staffs working in credit and business line. The first session introduced the EP and the second session covered the application process for projects in scope,the third session encouraged more project lending to adopt the Equator principles.
So far, MYCCB have provided nearly 500 million yuan of credit support for projects in EP scope. MYCCB continuously works to improve its internal procedures and communication to implement and comply with the EPs when financing projects in scope.