Coroprateresponsibility 1920X1080

The Equator Principles framework

As part of our commitment, we adopted the Equator Principles in March 2009. The Equator Principles are applied to our environmental and social risk assessment of projects and project-related transactions. We are one of a small number of export credit agencies that have adopted the Equator Principles.

For more information about the Equator Principles, visit the Equator Principles Association website.

Reporting of the Equator Principles

Principle 10 of the Equator Principles requires reporting on the implementation of the Principles, taking into account appropriate confidentiality considerations. Our reporting is provided according to the Australian financial year.

Our Procedure provides information on:

  • the environmental and social review process for our transactions, including project finance and project-related corporate loans. We do not provide bridge loans or project finance advisory services (other financial products covered by the Equator Principles)
  • our approval process
  • our approach to including conditions covering environmental and social issues in our transaction documents
  • how the Equator Principles are incorporated into our decision making.

Environmental and social risk evaluations, including Equator Principles reviews:

  • are undertaken by specialist staff in our Credit Department
  • are a distinct risk element within our decision making
  • require approval of our Board when the transaction is associated with a Category A project (a project with potentially significant adverse environmental and/or social impacts) located outside Australia.

Transactions can be declined at any stage in negotiation or due diligence.

Each year, internal training is provided to relevant staff on the implementation of Export Finance Australia’s Policy and Procedure for environmental and social review of transactions which include the Equator Principles and the IFC Performance Standards.

The table below summarises the number of transactions (involving projects) signed during the 2020/21 financial year.

The location, industry type, sector and results of screening and classification for individual projects supported by Export Finance Australia (including project finance and project-related corporate loans) are provided in our Annual Report and in our transaction register.

Current financial year breakdown

Project finance

The total number of Project Finance transactions that reached Financial Close from 1 July 2020 to 30 June 2021 period was 4. The breakdown is:

 

Breakdown by Category

 

Category A

Category B

Category C

  1 3 -
 

Detailed breakdown by Category

By sector

Category A

Category B

Category C

Mining 1 - -
Infrastructure - - -
Oil and gas - - -
Power - 3 -
Other - - -

By region

Category A

Category B

Category C

Americas 1 - -
Europe, Middle East and Africa - - -
Asia Pacific - 3 -

By Country Designation*

Category A

Category B

Category C

Designated 1 - -
Non-Designated - 3 -

Independent Review

Category A

Category B

Category C

Yes 1 - -
No - 3 -

* A list of designated countries is published by the Equator Principles Association here. Non-designated countries are those countries not found on the list.

Project sponsor and name

Calendar year

Sector

Host country

Phong Nguyen Wind Power Joint Stock Company (Lotus Wind Power Project) 2021 Power (Renewable) Vietnam
Phong Huy Wind Power Joint Stock Company (Lotus Wind Power Project) 2021 Power (Renewable) Vietnam
Lien Lap Wind Power Joint Stock Company (Lotus Wind Power Project) 2021 Power (Renewable) Vietnam
Mantos Copper S.A
Mantoverde Copper Mine Brownfield Expansion of existing mine.
2020 Mining Chile

Project-related corporate loans 

The total number of Project-Related Corporate Loans transactions that reached Financial Close from 1 July 2020 to 30 June 2021 period was 1. The breakdown is:

 

Breakdown by Category

 

Category A

Category B

Category C

  - 1 -
 

Detailed breakdown by Category

By sector

Category A

Category B

Category C

Mining - - -
Infrastructure - - -
Oil and gas - - -
Power - - -
Other - 1 -

By region

Category A

Category B

Category C

Americas - - -
Europe, Middle East and Africa - - -
Asia and Oceania - 1 -

By Country Designation*

Category A

Category B

Category C

Designated - 1 -
Non-Designated - - -

Independent Review

Category A

Category B

Category C

Yes - - -
No - 1 -

 

Project-related refinance and project-related acquisition finance

The total number of Project-Related Refinance and Project-Related Acquisition Finance transactions that reached Financial Close from 1 July 2020 to 30 June 2021 period was 0.


Project finance advisory services

We do not provide bridge loans or project finance advisory services covered by the Equator Principles. The total number of Project Finance Advisory Services mandated from 1 July 2020 to 30 June 2021 period was 0.