Tag Archives: Chair



Standard Bank becomes first African bank to chair Equator Principles Association

June 1, 2015 EP Association News

1 June 2015, Johannesburg

Standard Bank has been appointed the new chair of the Equator Principles Association for 2015/16, making it the first African Bank to be elected to this position.

The appointment, which takes effect on the 1 June 2015, comes at a critical juncture in the integration of environmental and social considerations within business as a component of responsible investing.

Standard Bank’s Executive & Head of Environmental and Social Advisory within Investment Banking, Nigel Beck, will be the bank’s lead representative and chair. Mr Beck says that while the world is aware there is a need for change, there is not a meeting of the minds on how this is to be achieved.

The Equator Principles (EP) is a step in this direction requiring project financing, advisory and project related corporate loans to meet consistent international standards from an environmental and social perspective. This is partially the reason the major drivers of global environmental, social and climate change is coming from the 80 Equator Principles Financial Institutions in 35 countries who have officially adopted the EP. These Financial Institutions cover the majority of international project finance debt within developed and emerging markets.

EP III is already in force and became mandatory for all new transactions (where the mandate was signed after 31 December 2013) from 1 January 2014. Mr Beck says Standard Bank will continue to focus on EP III implementation in conjunction with our clients across the continent. EP III extends the scope of the Principles beyond pure project finance and advisory, to project related corporate loans and bridge loans with the inclusion of additional focus on aspects such as greenhouse gas emissions at a project level.

The EP fits within Standard Bank’s strategy of funding environmentally and socially responsible business in South Africa and on the African continent, as well as partnering in the continent’s development. The Principles enhance transactions throughout the lifecycle, including advisory and arranging, resulting in better structured debt improved syndication and distribution. Standard Bank has been an active and engaged member of the EP Association since its adoption of the EP in 2009 and subsequent election to the Steering Committee in 2010. The EP Association is managed by an elected steering committee of 15 global banks, with Standard Bank the only African representative.

Standard Bank’s commitment to integrating environmental and social responsibility into its global business operations has been particularly evident in the past few years and its efforts have received significant external recognition. This includes being recognised by the Johannesburg Stock Exchange SRI as the only company to have been consistently in the best performer category in the past 8 years and ranked in the top twenty Greenest Banks globally by the Bloomberg Markets Magazine Greenest Bank rankings. Standard Bank was also awarded ‘Sustainable Bank of the Year 2013’ for the Africa/Middle East region in the FT/IFC Sustainable Finance Awards and achieved a position on the global “A list” of the Carbon Disclosure Project (CDP) Climate Performance Leadership Index.

We look forward to working with all Equator Principles Financial Institutions to ensure we remain focused on lending responsibly, enhance business opportunities and supporting the way in which we conduct our business with our customers across emerging and established markets,” says Mr Beck.

NOTES TO EDITORS:

About Standard Bank Group

Standard Bank Group is the largest African bank by assets with a unique footprint across 20 African countries. Headquartered in Johannesburg, South Africa, we are listed on the Johannesburg Stock Exchange.

Standard Bank has a 153-year history in South Africa and started building a franchise outside southern Africa in the early 1990s.

Our strategic position, which enables us to connect Africa to other select emerging markets as well as pools of capital in developed markets, and our balanced portfolio of businesses provide significant opportunities for growth.

The group has nearly 49 000 employees and over 1 200 branches, which enable it to deliver a complete range of services across personal and business banking, corporate and investment banking and wealth management.  Standard Bank’s Corporate & Investment Banking division offers its clients banking, trading, investment, risk management and advisory services to connect selected emerging markets to Africa and to each other. It has strong offerings in mining and metals; oil, gas and renewables; power and infrastructure; agribusiness; telecommunications and media; and financial institutions.

Headline earnings from continuing operations for 2014 were R21 billion (about USD 1.9 billion) and total assets were R1 907 billion (about USD 165 billion). Standard Bank’s market capitalisation at 31 December 2014 was R232,2 billion (about USD20 billion).

The group’s largest shareholder is Industrial and Commercial Bank of China (ICBC), the world’s largest bank, with a 20,1% shareholding. In addition, Standard Bank Group and ICBC share a strategic partnership that facilitates trade and deal flow between Africa, China and select emerging markets.

For further information go to www.standardbank.com

FOR MORE INFORMATION CONTACT:

Ross Linstrom

Standard Bank Media Relations

Email: ross.linstrom@standardbank.co.za

Mobile:  +27 (0)83 262 1882

Or

Hayley Crane

Standard Bank Media Relations

Email: hayley.crane@standardbank.co.za

Mobile:  +27 (0) 83 795 7422

 

Mizuho will assume the Chair of the Equator Principles Association – First Asian Bank to Hold the Chair Position

March 27, 2014 EP Association News

Mizuho Bank, Ltd. (MHBK; Yasuhiro Sato, President and CEO) will take on the role of Chair of the Equator Principles Association (EPA) from 1st May. This is the first time an Asian bank has been appointed as the EPA Chair. The EPA is an association of 79 global financial institutions that adopt the Equator Principles (EPs), supporting sound and responsible project development with environmental and social consideration.

The EPs are a risk management framework adopted by EP financial institutions (EPFIs) for determining, assessing and managing environmental and social risk in large-scale infrastructure or industrial projects when providing finance. These are a set of voluntary standards under which EPFIs request certain actions from the borrower to ensure the project is executed in an environmentally and socially sound manner.

First launched by US and European financial institutions in June 2003, the EPs are now a global standard for conducting large-scale development projects, adopted by 79 of the major banks around the world. In October 2003, Mizuho Bank (formerly Mizuho Corporate Bank) became the first Asian bank to adopt the EPs, in order to fulfill its responsibilities as an international bank with global operational presence.

In recent years, large natural resource development and infrastructure projects have been embarked upon in emerging countries including in Asia. On the other hand, the institutional framework to manage environmental and social aspects is still in the process of developing in these regions. MHBK has been leading the EPA’s EP Outreach Working Group in Asia since August 2010, concentrating on communicating with the local governments and banks to expand and deepen their understanding of the EPs.

Helping the institutions build E&S risk management capacity through seminars, hosting of trainees, etc., MHBK’s efforts have been instrumental in having initial member banks from China and India adopt the EPs.

MHBK is firmly committed to play a leadership role among EPFIs as the first Asian Chair to pursue the sustainable economic development of emerging markets in Asia and all around the world by taking advantage of its long experience in executing EP-based project finance.

For further information go to: http://www.mizuhobank.com/index.html

 

Citi Elected As New Chair Of The Equator Principles Association Steering Committee

March 15, 2010 EP Association News

On 15 March 2010 Citi, one of the four founding banks of the Equator Principles (EPs) and long term contributor to its development, will assume the pivotal role of Chair of the EP Association Steering Committee. Citi is honoured to accept this appointment, which was unanimously supported by the Steering Committee recently, and will be stepping up during a crucial period of Equator Principles Financial Institutions (EPFI) engagement in the International Finance Corporation Performance Standards Policy Review and Update process, the result of which may impact on the EPs.

Since 2005, Citi has financed over $100 billion in global infrastructure and development projects subject to the EPs. Citi has led or co-led on a number of initiatives and guidance materials related to strengthening the EP approach including the 2006 EP II revisions, and good practice guidance on transparency and reporting and loan documentation. Citi recognises the important contribution the EPs have made in influencing its ESRM Policy approach to other financial products beyond project finance, cementing Citi’s strong commitment to sustainability and responsible finance, and enhancing client relationships on these issues.

Shawn Miller, Citi’s Global ESRM Director, who will lead the Chair efforts on Citi’s behalf, said: “This is a great honour for Citi. The Equator Principles enormous success in what is relatively a short-period of time is truly remarkable. However, we must recognise that this success generates new demands and expectations, and I am confident this group of banks will collectively rise to the challenge of ensuring Equator continues to influence the market in a positive way. I look forward to partnering with my EPFI colleagues during this time.”

 

Itaú Holding Assumes Role Of Chair Of The Steering Committee Of The Equator Principles

September 22, 2008 EP Association News

São Paulo – 22 September 2008

The Bank is the first from an emerging economy to lead the Steering Committee of the Equator Principles, which brings together financial institutions committed to sustainability in project financing.

From 22 September 2008, Itaú will lead the activities of the Equator Principles Financial Institutions (EPFI) – a public pledge that they are committed to taking social and environmental risks into consideration in project financing. Marcelo Battisti, the Credit and Socio-environmental Risk Manager, Itaú BBA will assume the role of Chair of the Steering Committee of the Equator Principles (EP) and this is the first time an institution from an emerging economy has assumed leadership of this group.

“Being chosen for this important role gives us great pride and highlights the importance the adopting institutions of the Equator Principles give to the emerging markets and to Brazil, in particular. However, there is still plenty of room to outreach to others in these markets and raise awareness of the EP’s to local banks,” Battisti said.

There are currently 61 financial institutions from a number of countries which are adoptees of the Equator Principles, 12 of which are on the Steering Committee. The Equator Principles were launched in 2003 and are a banking industry framework for addressing environmental and social risks in project financing. They require any company which applies for a loan to carry out a social and environmental assessment, and consultation and disclosure (if appropriate) to establish an action plan and incorporate covenants. The companies must also arrange for independent audits to ensure that the project is operating in line with the appropriate standards. The financial institutions have voluntarily committed themselves to incorporating the Principles in projects worth US$ 10 million or more. The Principles were revised in 2006 and were extended to advisory services in structuring projects.

Itaú plays a leading role in the Equator Principles Steering Committee and Working Groups. The Bank has gained great experience in this area as it was the first Brazilian bank to take social and environmental concepts into consideration in its analyses and has been doing so since 2000. In 2007, it analyzed and approved six projects within the scope of Itaú BBA which were related to the Equator Principles. Two of these were categorized as high risk and four as medium risk and involved investments of R$ 4.1 billion.

Itaú´s experience of adopting the Principles and considering social and environmental aspects in its credit policies has been so successful that it is seen as a benchmark in the sector. “In May, we received representatives of the Industrial Bank of China who wanted to learn about Itaú BBA´s experience in assessing the social and environmental risk in an emerging market like Brazil,” added Battisti who is currently in China giving a series of presentations to share this expertise with the participation of the IFC and Chinese banks.

Focus on sustainability

To highlight its concern with social and environmental issues, Itaú launched its Social and Environmental Risk Policy at the end of 2007. This Policy is used in the process of granting credit of more than R$ 5 million to corporate clients of Itaú BBA and Itaú. Proprietary analysis processes will be developed for the Itaú Buen Ayre, Itaú Chile, Itaú Uruguay and Itaú Europa banks by the end of 2009, taking into consideration the specific features of each institution. Itaú is the current leader in the ranking of Latin American banks which adopt the best corporate governance practices drawn up by the Management & Excellence consultancy and Latin Finance magazine. The Bank is also the only Latin American institution to have been part of the Dow Jones Sustainability World Indexes (DJSI) since it was launched in 1999 and the Business Sustainability Index of the São Paulo Stock Exchange (Bovespa). It also won the A+ GRI Checked seal of the Global Reporting Initiative this year for its Annual Sustainability Report.