Bank of Africa : Equator Principles Report FY 2022

Equator

Principles Report

2022

Contents

Introduction	3
What are the Equator Principles?	3
Implementation of the Equator Principles by BANK OF AFRICA	5
Environmental and Social Risk Analysis Process	6
Equator Principles reporting	8
Independent audit organisations	10
Additional Information	10
Awareness	10
BANK OF AFRICA's ESG track record	10
BANK OF AFRICA, Signatory of the United Nations Global Compact	12
BANK OF AFRICA, Signatory of the Principles for Responsible Banking	12
BANK OF AFRICA's contribution to Positive Impact Financing	13

Introduction

The Equator Principles are a set of voluntary guidelines adopted by financial institutions, for determining, assessing and managing Environmental and Social risks in projects. They were established to ensure that the projects financed and advised on are developed in a socially responsible manner, reflecting sound environmental management practices.

The Equator Principles (EP) were launched in 2003 based on the International Finance Corporation Performance Standards on social and environmental sustainability and on the World Bank Group Environmental, Health, and Safety Guidelines. The Principles were updated in 2006 (EPII) and again in 2013 (EPIII). The most recent version, EP4, was agreed upon in November 18th 2019, to come into effect on October 1st 2020.

The 4th version includes update in four key areas: Scope and applicability of the Equator Principles; Applicable standards in Designated versus Non-Designated countries; Human rights and social risk and Climate Change.

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Scope

The scope of the Equator Principles (EP4) has been extended to apply to Project-Related Refinancing and Project-Related Acquisition Financing where:

• The underlying Project was financed in accordance with the Equator Principles framework
• There has been no material change in the scale or scope of the Project and
• The Project completion has not yet occurred at signing of facility/ loan agreement

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As of July 2023, 139 Equator Principles Financial Institutions (EPFIs) in 39 countries have officially adopted the Equator Principles, covering the majority of international project finance debt within developed and emerging markets. BANK OF AFRICA has been an EP member since 2010.

For further information about the Equator Principles, please consult the official website www.equator- principles.com

This report provides an overview of the most recent data for the 2022 financial year (from January 1st to December 31st, 2022). The recorded transactions have been measured in accordance with the requirements of Principle 10 of the Equator Principles, which states that the EPFI will, at least annually, report publicly on transactions that have reached Financial Close and on its Equator Principles implementation processes and experience.

Implementation of the Equator Principles by BANK OF AFRICA

BANK OF AFRICA became the 1st and the only Moroccan Bank in the Maghreb Region to adopt the Equator Principles on May 10th, 2010, underlining the Bank's strong commitment to finance environmentally and socially responsible projects. This is reflected through the methodologies developed by the Bank to identify, reduce and mitigate potentially adverse environmental and social impacts of projects financed.

EP transactions are run through internal environmental and social policy, All information about the EPs are available for employees on intranet pages, the guidance documents and procedures have been in place in order to ensure the effective application of the principles.

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