Ahli United Bank (AUB) adopted the Equator Principles (EP) in May 2011. EPs provide a risk management framework for determining, assessing and managing environmental and social risk.

EPs apply in below five financial products;

• Project Finance
• Project Finance Advisory Services
• Project-Related Corporate Loans
• Bridge Loans
• Project-Related Refinance, and Project-Related Acquisition Finance

AUB has put in place performance standards within its risk framework to assess and evaluate Environmental and social risks associated with project financing. AUB has designated Manager from Risk Management to monitor implementation of the EPs (EP4). The EP Manager will have an oversight on Social and Environmental issues involved in financing proposals. The EP Manager is also assisted by EP Coordinator from Risk Management Department.

As per Banks process, Business Unit will prepare S&E (Social & Environmental) Due Diligence report along with every credit proposal. EP Manager/EP Co-ordinator reviews the S&E due diligence report and suggests covenants if required. Post EP Mangers/EP Co-ordinators review, credit proposals are forwarded for further appraisal and approval.

Under the Equator Principles, E&S Risks are classified as follows:

Number of project finance transactions that reached financial close

Project Name Reporting for Project Finance Transactions

Equator Principles Financial Institutions (EPFIs) are required to annually report to EP the names of project finance transactions that reached financial close and were subject to review. Pursuant to its commitments as an EPFI, AUB will report the data related to its activity wherever consent to disclose such information is received.