The Equator Principles III - 2013
The Equator Principles (EP) III is effective from 4 June 2013.
EP Association Members have a transition period from 4 June 2013 to 31 December 2013 to implement EP III for all products in the Scope (i.e. Project Finance, Advisory, Bridge loans and Project-Related Corporate Loans). The EP Association Steering Committee wishes to ensure that EP Association Members, clients and stakeholders can transition smoothly and consistently to EP III and provides the following guidance on how this can be achieved:
- EP III is effective from 4 June 2013.
- Some Equator Principles Financial Institutions (EPFIs) may need further internal preparation time to apply EP III, therefore EP II can be applied to new transactions (i.e. where the mandate is signed after 4 June 2013) up to the end of the transition period (i.e. 31 December 2013).
- EP III is not intended to be applied retroactively therefore does not apply to transactions where the mandate was signed before 4 June 2013.
- EPFIs are strongly encouraged to apply EP III as soon as possible and a common approach to applying the EP can be agreed by banks in a syndicate using the new information sharing language of EP III.
- EP III should be applied to all new transactions from 1 January 2014.
The EP Association Steering Committee accepts that in certain situations there might be legal constraints that prevent this guidance from being strictly applied. Each EP Association Member should endeavour to make all necessary efforts to ensure this guidance is incorporated into their institution's review of transactions according to their own risk management frameworks and engagement with clients. Note that financial institutions that adopt during the transition period should also follow this transition guidance.
OVERVIEW OF KEY CHANGES - EP II TO EP III
EQUATOR PRINCIPLES II - 2006
From 4 June 2013, as per the Transition Guidance above, EP II can be applied to new transactions (i.e. where the mandate is signed after 4 June 2013) up to the end of the transition period (i.e. 31 December 2013).