Ecobank adopts ‘Equator Principles’ to African projects exceeding $10m

The Ecobank Transnational Incorporated (ETI), parent company of the Ecobank Group has announced its adoption of the Equator Principles – the industry standard for financial institutions active in project finance.

According to the Togo-based Group, it will apply the principles to project finance activities in all relevant sectors and across all of the 30 countries in Middle Africa in which it operates.

The Pan African bank noted that the principles are adopted voluntarily by financial institutions and are applied where total project capital costs exceed $10 million.

“By adopting the Equator Principles, Ecobank commits not to provide loans to projects where the borrower cannot or will not comply with the environmental and social standards set out in the Equator Principles’ policies and procedures,” the lender said in a statement.

The Equator Principles are a credit risk management framework for determining, assessing and managing environmental and social risk in project finance. The principles were launched in 2003 and are based on the Policy and Performance Standards and on the Environmental Health and Safety Guidelines set down by the International Finance Corporation (IFC), and were initially adopted by ten leading global financial institutions.

By Ekow Quandzie