Washington, March 29, 2007—IFC,
the private sector arm of the World Bank Group, welcomes the announcement
by Argentina’s Banco Galicia that it has become the 47th financial institution
to adopt the Equator Principles. This confirms the bank’s commitment to
sustainability and leadership in corporate and social responsibility in
Argentina. It further establishes the Equator Principles as the international
environmental and social standard for project finance.
Latin America has played a leading role in adhering to the Equator Principles
among emerging economies. Brazil was the first developing country to be
represented by banks adopting the principles, followed by South Africa,
and now Argentina with Banco Galicia. These banks have been playing an
increasing role in project finance in their respective countries. By adopting
the Equator Principles, they are not only leveling the playing field, but
also reducing their risks by investing in like-minded companies with a
focus on sustainability.
According to Rachel Kyte, IFC’s Director for Environmental and Social
Development, “As the first Argentine bank active in project finance to
adopt the Equator Principles, Galicia is taking a major step forward. Galicia
is setting the standard locally, and we hope more banks in Latin America
will follow suit.”
The Equator Principles are a voluntary set of guidelines for managing social
and environmental issues related to the financing of development projects,
which are based on IFC’s performance standards. Launched by 10 banks in
June 2003, the principles were revised in June 2006 and have been adopted
to date by 47 financial institutions. In total, these banks are estimated
to arrange about 85 percent of project financing worldwide.
In adopting the Equator Principles, Banco Galicia will provide loans only
to projects that are in compliance with internationally recognized social
and environmental standards.
The current signatories to the Equator Principles are: ABN AMRO Bank, ANZ,
Banco Bradesco, Banco do Brasil, Banco Galicia, Banco Itaú, Bank of America,
Barclays plc, BBVA, BES Group, BMO Financial Group, BTMU, Caja Navarra,
Calyon, CIBC, Citigroup Inc., Credit Suisse Group, Dexia Group, Dresdner
Bank, E+Co, EKF, FMO, Fortis, HBOS, HSBC Group, HypoVereinsbank, ING Group,
Intesa Sanpaolo, JPMorgan Chase, KBC, La Caixa, Manulife, MCC, Millennium
bcp, Mizuho Corporate Bank, Nedbank Group, Rabobank Group, Royal Bank of
Canada, The Royal Bank of Scotland, Scotiabank, SMBC, Standard Chartered
Bank, Unibanco, Wachovia, Wells Fargo, WestLB AG, and Westpac Banking Corporation.
For more information on the Equator Principles, please visit www.equator-principles.com.
About IFC
IFC, the private sector arm of the World Bank Group, promotes open and
competitive markets in developing countries. IFC supports sustainable
private sector companies and other partners in generating productive jobs
and delivering basic services, so that people have opportunities to escape
poverty and improve their lives. Through FY06, IFC Financial Products has
committed more than $56 billion in funding for private sector investments
and mobilized an additional $25 billion in syndications for 3,531 companies
in 140 developing countries. IFC Advisory Services and donor partners have
provided more than $1 billion in program support to build small enterprises,
to accelerate private participation in infrastructure, to improve the business
enabling environment, to increase access to finance, and to strengthen
environmental and social sustainability. For more information, please visit
www.ifc.org.
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