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

Equator Principles Implementation

In line with the Equator Principles 4.0 and the credit guidelines for members incorporating the Equator Principles 4.0 issued by the Banking Association, Mega Bank has formulated the " Guidelines for Loans Applicable to the Equator Principles ", revised the "Management Guidelines for Project Financing", 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.

When accepting credit applications from corporate customers, the bank's business units should fill out the "Equator Principles Applicability Check" in the e-loan credit management system to determine whether the credit case falls within the scope of the Equator Principles. If the case is deemed applicable, the bank’s business units should inform the customer of the content and regulations of the Equator Principles and confirm their willingness to comply with the various requirements of the Equator Principles during the term of the credit facility. If the customer is unable to commit to complying with the Equator Principles regulations, the credit application 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 1 January 2023 to 31 December 2023

• Project Finance

• Project-Related Corporate Loans

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

• Project Finance Advisory Services