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Leading International Banks to Announce Major Initiative -- The Equator Principles

Leading International Banks to Announce Major Initiative -- The Equator Principles

Published 06-03-03

Submitted by International Finance Corporation

WASHINGTON, DC - Ten leading banks from seven countries will announce the adoption of the "Equator Principles," a new comprehensive set of mandatory environmental and social guidelines for the financing of projects. The Equator Principles are based on the policies and guidelines of the International Finance Corporation (IFC), the private sector lending arm of the World Bank Group.

Why this announcement is significant:

  • The scale of global investment affected. Precise estimates will depend on the final number of adopting banks, which will be announced on Wednesday, but initial rough estimates indicate that roughly $14 billion in project finance investments worldwide annually will be affected.

  • The breadth of investment affected. Unlike single industry codes of conduct, the adopting banks will be applying these standards across a wide array of sectors, ranging from manufacturing and infrastructure to oil, gas, mining to information technology.

  • The rarity of such a move by financial institutions. Global private-sector financial institutions have traditionally kept a low profile with respect to the environmental and social aspects of their investments.

  • The context. Arguably, this is one of the largest collective responses by any group in the private sector to the concerns raised in the globalization debate over the past decade.

    Press conference
    DATE: Wednesday June 4th
    TIME: 10:30 am eastern time
    LOCATION: IFC Headquarters, 2121 Pennsylvania Avenue NW, Room L-109, Washington, DC 20433

    SECURITY REQUIREMENTS: Please bring a photo ID and allow enough time to receive a visitor's pass at security. REGISTRATION: To attend the press conference, please register by emailing your name and affiliation to:

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    International Finance Corporation

    International Finance Corporation

    The International Finance Corporation, the private sector arm of the World Bank Group, is the largest multilateral provider of financing for private enterprise in developing countries. IFC finances private sector investments, mobilizes capital in international financial markets, facilitates trade, helps clients improve social and environmental sustainability, and provides technical assistance and advice to businesses and governments. From its founding in 1956 through FY06, IFC has committed more than $56 billion of its own funds for private sector investments in the developing world and mobilized an additional $25 billion in syndications for 3,531 companies in 140 developing countries. With the support of funding from donors, it has also provided more than $1 billion in technical assistance and advisory services.

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