ARAB AFRICAN INTERNATIONAL BANK - AAIB Annual EP Report... · INTRODUCTION In 2003, ... In 2009,...
Transcript of ARAB AFRICAN INTERNATIONAL BANK - AAIB Annual EP Report... · INTRODUCTION In 2003, ... In 2009,...
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Prepared by Arab African International Bank
ARAB AFRICAN INTERNATIONAL BANK
5th ANNUAL EP REPORT APRIL 2015
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Prepared by Arab African International Bank
Claiming Statement:
This Equator Principles Report is covering AAIB project lending operations between the
period November 2014-onwards (continuous projects). This is emerging from AAIB’s
keenness on complying with the EP governance and annual reporting rules
INTRODUCTION
In 2003, Arab African international Bank has spontaneously started giving back to the community,
targeting health & education as main pillars for development in Egypt. With baby steps, AAIB
launched the “AAIB Award” as the first competition for undergraduate students, in public and
private universities in Egypt. The competition encourages students to innovate new feasible
banking products and services. It also aims at bridging the gap between academia and practice in
banking sector. Within
The same year, AAIB has adopted Cairo University Special Pediatric Hospital “CUSPH” with
an aim to turn this hospital into a world-renowned center of excellence.
Codifying the AAIB practice in CSR, the bank adopted the United Nations Global Compact in 2004
as guiding framework in human rights, labor rights, environment and anticorruption aspects of
the banking operations and working environment. In 2007, AAIB adopted the London
benchmarking Group for measuring business and community impact of the bank’s CSR practices.
Two years later, in 2009, AAIB adopted the Equator Principles as a method of moving from strategic philanthropy & CSR organization to a Sustainable Bank.
AAIB is the first and only bank in Egypt &
Second in the MENA Region to adopt the EP in
2009
In 2009, Arab African International Bank (AAIB) subscribed to the Equator Principles (EP) to
broaden its project lending assessment to incorporate social and environmental risks within its
credit and project lending core business operations. The Equator Principles are of voluntary
standards designed to assist banks identify and manage social and environmental risks associated
with direct financing of large infrastructure projects in excess of USD 10 Million.
These principles serve the credit risk management framework for determining, assessing and
managing environmental and social risk in project finance transactions. Signatories are required
to evaluate the environmental and social impact of projects exceeding USD 10 (Ten) million
Dollars based on the policies and guidelines of the World Bank and the International Finance Corporation (IFC).
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Adherence to the Principles allows AAIB to work with customers on the management of
environmental and social policy related issues to their investments.
To comply with the EP, AAIB has established internal guidelines in 2010, to evaluate the
environmental and social risks associated with the projects financed by the bank.
During October and November 2009, AAIB took leap steps in working internally through educating and training our corporate and risk staff, whilst also creating awareness externally to other financial intuitions to start taking the initiative of financing projects while taking in consideration environmental and social risk assessment.
Implementing the Equator Principles on projects
financed by the bank is carried out through AAIB’s
specific environmental and social risk policies and
procedures in respect of the Principles.
The policies and procedures outlined the detailed manner in which AAIB corporate finance
projects will abide by the Equator Principles. The procedures also identified how the
responsibilities, in the implementation of these principles, were apportioned between various
departments concerned and committees, where applicable.
Because AAIB understands the seriousness of the environmental crisis and the detrimental consequences of climate change, the bank is committed to promoting green finance and achieving industry impact by supporting environmentally/socially-sound projects and investing in Green economy developments.
The Table below shows the AAIB finances according to EP between November 2013 until April 2015.
AAIB successfully trained 70% credit
and risk staff
Members and managers to best
apply these principles.
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Company Name Project Name Category Agent Bank Consultant
Report
Calendar
(transaction
reached
financial close)
Sector Host
Country
Name
Palm Hills for
Development
Palm Hills for Development C AAIB On Hand 2014 Real Estate Egypt
Upper Egypt
Electricity
Production
Company
Project one: South Helwan
Project Two: Assuit
A* National
Bank of Egypt
On Hand 2015 Electricity Egypt
Egyptian
Chemical
Industries
Company
Project Name: KIMA A National
Bank of Egypt
On Hand 2015 Fertilizers Egypt
(Aswan)
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AAIB HAS JOINED
THE EQUATOR
PRINCIPLES
OUTREACH
WORKING GROUP
FOR AFRICA
AND MIDDLE EAST
IN 2012
Members: AAIB, ABSA, Barclays, BMCE,
Credit Agricole CIB, First Rand, Societe Generale, Standard Bank
These Sub-working Groups develop and
implement strategies to communicate,
support and train, in cooperation with
multilateral institutions and development
agencies/banks, other financial institutions
in all regions of the world, which undertake
project finance and could benefit from adopting the EPs (ongoing).
FIRST PLATFORM TO
PROMOTE
SUSTAINABLE
FINANCE IN EGYPT
In the year 2013, Arab African International
Bank has celebrated a decade of
sustainability; ten years of various practices,
maturing from Strategic Philanthropy
towards Sustainable Banking & Finance.
Throughout this decade, AAIB has
experienced a long learning journey of
practices that acted as ongoing gap analysis
to guide future-maturity within its
sustainability practice.
This journey of sustainability has polarized
into Mostadam, the first platform for
Sustainable Finance in Egypt and the MENA
Region. Mostadam will embrace
Sustainability into the banking operations,
aiming at Socially Responsible Banking
products in all banks in Egypt.
The platform was launched in 2014 by AAIB (funder & Co—founder), UNDP (Co-founder) and Egyptian Corporate Responsibility Center (UN Global Compact Focal point in Egypt as Managing Partner). The platform has various arms such as research, training & development, stakeholders’ management, regulatory advocacy & policies & procedures.
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AAIB & INDUSTRY ADVOCACY: MOSTADAM
VISION To empower the banking sector in Egypt to become forerunner in sustainable finance on a
global level. MISSION
Developing a national model for sustainable finance in Egypt.
MAIN OBJECTIVE
Contextualize sustainable finance through initializing a platform that advocates for
Financial Inclusion, Clean Energy Funding, Entrepreneurship, Corporate Governance; and
sustainability reporting.
GOALS
Professional Training & Bankers Dialogue
Introducing New Banking Products
Sustainability Reporting Blueprint/National Model for Sustainable Finance
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AAIB’S ENVIRONMENTAL ENGAGEMENT
There are many ways in which the financial sector could contribute to reducing its impact on
climate change and the environment.
AAIB has been the first bank in Egypt to measure its Carbon Footprint and publish its first report
AAIB has been the first bank in Egypt to measure its Carbon Footprint and publish its first report highlighting areas of environmental responsibility on both the organizational as well as the individual (employees) level.
Accordingly, the bank new branches are all
supported by LED light for both cost
efficiency as well as to reduce its carbon emissions and hence its footprint.
Individual Social Responsibility (ISR) is a
mission we are keen about promoting among
our employees. Engaging our staff with global
sustainability issues and planet conservation
tips is a way of educating them on how to live
sustainably. Our message was to demonstrate
how each individual has a significant role in saving the environment.
In light of the annual Earth Day (April 22nd), under the slogan, Live Sustainably, AAIB Sustainability used
innovative approaches to promote environment protection among its employees through distributing
environmentally friendly products (LED lambs, recycled bags, and a plant. In 2014, AAIB announced an
internal competition for best environment initiative. In 2015, AAIB intends to focus on energy efficiency to
reduce electricity consumption.
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Note:
The projects’ categorized as “A” project are according to the World Bank criterion, which is equivalent to the same category (A) under the EPs.
http://web.worldbank.org/WBSITE/EXTERNAL/PROJECTS/EXTPOLICIES/EXTOPMANUAL/0,,c
ontentMDK:20064724~menuPK:64701637~pagePK:64709096~piPK:64709108~theSitePK:50
2184,00.html
Arab Investment Company was listed in 2013 report; however, the client fully settled his balances (project completed).