About Equator Principles

The Equator Principles is an environmental and social risk assessment framework for major project finance issued by the Equator Principles Association in 2003, providing financial institutions with a set of financing processes to identify, evaluate and manage the environmental and social risks involved in the projects. Mega Bank officially became a member bank of the Equator Principles Association on August 17, 2021 in order to implement its commitment to sustainable development, and fully abides by the 10 principles of the Equator Principles.

Official website of the Equator Principles Association

Equator Principles Implementation

In accordance with The Equator Principles 4.0 promulgated by the Equator Principles Association and with reference to The Bankers Association’s Credit Granting Guidelines for Members which has incorporated the Equator Principles 4.0, the Bank formulated the "Operating Guidelines for the Application of the Equator Principles in Credit Granting Cases", revised the "Key Points for the Management of Project Financing Business", and also established an "Environmental and Social Risk Team" to be responsible for the environmental and social risk assessment of the Equator Principles cases, and to formulate environmental and social risk review report. The risk review report is submitted to the authority level for review and approval to ensure that the case meets the requirements of the Equator Principles, environmental and social regulations, to fulfill the social responsibilities of the bank.

While corporate borrowers apply for any facility, the Bank's branch shall fill in the "Equator Principles Applicability Check List" in the e-loan credit information management system to check whether the facility complies with the scope of application of the Equator Principles. If the facility is eligible for the Equator Principles, the branch shall explain the content and guildence of the Equator Principles to the borrower, make sure that the facility will comply with the requirements of the Equator Principles during the tenor. If the borrower fails to commit to comply with the Equator Principles, the facility should be politely declined.

Training

In order to familiarize all units with the relevant mechanisms and forms of the Equator Principles, Mega Bank appointed external consultants to conduct training courses for the Environmental and Social Risk Team and each business unit/branch. Mega Bank also provided training materials on the e-learning platform to deepen the awareness of environmental and social risks, and fully implement the Equator Principles.

Equator Principles Cases：Adoption Date (17 August 2021) to 31 December 2022

• Project Finance

• Project-Related Corporate Loans

• Bridge Loans, Project-Related Refinance, and Project-Related Acquisition Finance

• Project Finance Advisory Services