On May 28-29, 2012 the Egyptian Banking Institute (EBI) held a Training Program on the Equator Principles at its headquarters in Nasr City. The training program was delivered by Geoffrey Mazullo, Principal, Emerging Markets ESG.
The Director of Banking and Finance Programs of the EBI and 19 representatives of several Egyptian banks attended the training program.
The seminar was designed didactically and pragmatically. It began with a thorough analysis of the development of sustainability in banking operations. Thereafter it proceeded step-by-step through each process necessary for adopting and implementing the Equator Principles.
Concepts and definitions related to the Equator Principles were defined. Then the pre-requisite documents and institutions involved in the Equator Principles were described.
The participants analyzed a hypothetical case study in order to determine: how adoption of the Equator Principles would impact the bank’s risk management policy and procedures; and how implementation and integration of the Equator Principles would impact the bank’s lending and risk management policies and procedures for project finance.
The training program introduced participants to the International Finance Corporation (IFC) Sustainability Framework and Performance Standards (updated January 2012) and the World Bank Group Environmental, Health and Safety Guidelines.
The Environmental and Social Management System (ESMS) required by the Equator Principles and the Environmental and Social Assessment as well as Action Plan required for each project finance transaction were described.
Participants analyzed each of the above frameworks, standards and systems as well as the documents required by them by answering practical questions related to the hypothetical case study.
Participants completed an exercise analyzing the relationship between the Equator Principles and Egyptian legislation.
At the end of the training program, the trainer outlined the procedures and process for adoption of the Equator Principles, membership in the Equator Principles, implementation of the Equator Principles and reporting required by the Equator Principles.
Participants received a detailed bibliography of articles about the Equator Principles and a list of resources, including all of the relevant documents, standards and templates.
As of May 28, 2012 one Egyptian bank has adopted the Equator Principles. The EBI hopes that this training program will create awareness among Egyptian banks about the benefits and positive outcomes of adoption the Equator Principles.