Reporting – First Abu Dhabi Bank (FAB) (2019)

Adoption Date:20 September 2015
Country of Headquarters:United Arab Emirates
Region of Headquarters:Middle East
Institutional Reporting Hyperlink:https://www.bankfab.com/-/media/fabgroup/home/about-fab/sustainability/sustainable-finance/equator/fab-equator-principles-report-2019.pdf?view=1
Current EPFI Reporting Year/Period:2019
EPFI Reporting in Compliance:Yes

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 above.

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

Totals200
Totals200
SectorCategory ACategory BCategory C
Mining1
Infrastructure
Oil & Gas1
Power
Others
RegionCategory ACategory BCategory C
Americas
Europe, Middle East & Africa2
Asia Pacific
Country DesignationCategory ACategory BCategory C
Designated1
Non-Designated2
Independent ReviewCategory ACategory BCategory C
Yes2
No

1Designated 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. For the list of Designated Countries, go to: https://www.equator-principles.com/index.php/ep3/designated-countries

PROJECT NAME REPORTING FOR PROJECT FINANCE TRANSACTIONS

No.Project NameSectorHost Country Name/ Project LocationYear of Financial Close
1GAC Bauxite ProjectMiningGuinea2019
2Jubail Export Refinery ProjectOil & GasSaudi Arabia2019

PROJECT-RELATED CORPORATE LOANS

Total number that reached financial close in the reporting period: 1

Totals010
Totals010
SectorCategory ACategory BCategory C
Mining
Infrastructure
Oil & Gas
Power1
Others
RegionCategory ACategory BCategory C
Americas
Europe, Middle East & Africa
Asia Pacific1
Country DesignationCategory ACategory BCategory C
Designated1
Non-Designated1
Independent ReviewCategory ACategory BCategory C
Yes
No1

1Designated 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. For the list of Designated Countries, go to: https://www.equator-principles.com/index.php/ep3/designated-countries

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 at: https://www.bankfab.com/-/media/fabgroup/home/about-fab/sustainability/sustainable-finance/equator/fab-equator-principles-report-2019.pdf?view=1