Ex-Im Bank adopts Equator Principles
The U.S. Export-Import Bank has adopted the Equator Principles, a globally recognized benchmark for financial institutions to determine, assess and manage the social and environmental risks of international project financing.
The Equator Principles are a voluntary set of standards developed by private sector banks, including Citigroup, in cooperation with the World Bank Group’s International Finance Corp., project sponsors, engineers and nongovernmental organizations.
By adopting the Equator Principles, Ex-Im Bank joins more than 70 financial institutions and three other export-credit agencies, including Export Development Canada, Denmark’s Eksport Kredit Fonden, and Australia’s Export Finance and Investment Corp.
“Adopting (the Equator Principles) will enable us to speak the same language as our commercial partners and work more closely with them to streamline the review process for new projects,” said Ex-Im Bank Chairman and President Fred P. Hochberg, in a statement.
Ex-Im Bank’s adoption of the Equator Principles aligns its environmental requirements for project-finance transactions with those of commercial banks that apply these principles. This alignment will facilitate the bank’s application and review process by helping project sponsors and others involved to understand and implement the environmental and social requirements for Ex-Im Bank-supported projects.
The bank said the Equator Principles are consistent with and complement its current environmental review process. Ex-Im Bank will continue to apply its broader review of the environmental and social considerations of all projects receiving its loan and guarantee support.
More information on the Equator Principles is available here. Ex-Im Bank’s environmental procedures and guidelines are on its Web site.