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Siam Commercial Bank (2023)
| Signing Date | 31 Jan 2022 |
| Region of Headquarters: | Asia-Oceania |
| Current EPFI Reporting Year/Period: | 2023 |
| Institutional Reporting: | Link to Report |
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: 35
| Equator Principles Category | A1 | B2 | C3 |
|---|---|---|---|
| Sector | |||
| Mining | |||
| Infrastructure | 6 | ||
| Oil & Gas | |||
| Power | 2 | ||
| Others | 27 | ||
| Region | |||
| Americas | |||
| Europe, Middle East & Africa | |||
| Asia Pacific | 2 | 33 | |
| Country Designation | |||
| Designated Country 4 | |||
| Non Designated Country | 2 | 33 | |
| Both | |||
| Independent Review | |||
| Yes | 2 | ||
| No | 33 | ||
| Totals | 2 | 33 | |
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 | Monsoon | Power | Lao PDR | 2023 |
| 2 | Luang Prabang Hydro Power Plant | Power | Lao PDR | 2023 |
Number of projects that were not disclosed as per the disclosure conditions specified in Annex B of the Principles: 33
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
The Siam Commercial Bank (SCB) is the first Thai bank to adopt the Equator Principles (EPs). As a result, SCB has engaged an external environmental and social advisory firm with experience working with other EPs banks to develop the SCB EP Process and Tools.
SCB has incorporated the EPs requirements into the bank’s Credit Policy Guide to ensure their implementation in the credit process. All project-related financing cases will be subject to an EPs screening checklist to determine whether the deal will trigger the EPs process. If the process is triggered, a second checklist must be completed to categorize environmental and social risks into high, medium-high, medium, and low, i.e., A, B+, B, and C, respectively. The checklists are completed by business units and require endorsement from a sustainability specialist.
Environmental and social due diligence will be conducted in accordance with the environmental and social risk of the project. For Category A and Category B+ projects, an independent environmental and social advisor is required to assess compliance with applicable requirements and also recommend an Environmental and Social Action Plan (ESAP) to ensure compliance with the EPs. For Category B projects, internal environmental and social due diligence will be conducted in accordance with the protocol of the EP Process to identify any ESAPs (if any). The customer will be required to comply with the identified ESAP through the loan agreement. If a customer decides not to adhere to the EPs conditions, the bank will not be able to provide financial support as stated in the Credit Policy Guide.
To ensure the implementation of the EPs, the SCB internal audit also considers the EP Process within the scope of auditing. SCB has also provided EP training to over 300 relevant business units and personnel. The two sessions aimed to provide knowledge, understanding, and enhance their capabilities in adopting the Equator Principles, including the EP Process and the IFC Performance Standards and Guidelines. The training has been recorded and incorporated into the SCB Academy intranet.
Further information on Siam Commercial Bank´s implementation of the EPs is provided on p.38 of their Sustainability Report available at: https://www.scbx.com/wp-content/uploads/2024/03/scbx-sustainability-report-2023-en_0b4594.pdf