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We were the first Australian bank, and one of ten founding signatories globally to adopt the Equator Principles. Today, there are over 60 signatories, covering more than 80% of the global project-financing market.

In adopting the Principles, we agreed to provide loans only for projects whose sponsors can demonstrate their ability and willingness to comply with processes that ensure they are developed in a socially responsible manner, according to sound environmental management practices.

The full text of the principles, as well as frequently asked questions, can be found on the Equator Principles website.

Applying the Equator Principles

The Equator Principles constitute an integral part of our project finance evaluation and decisioning process. We apply the Principles to all project finance transactions assessed, as we do not consider size to be the principal driver of environmental and social risks. To meet our commitments we apply a detailed process of assessment against the Principles, including:

• Categorising all new and existing projects as category A, B or C
• Completing internal documentation using the Equator Principles as the process benchmark
• Detailing any special conditions or covenants to apply
• Monitoring compliance with conditions subsequent and other material obligations of the borrower.

Following assessment, we include in documentation appropriate representations and covenants that ensure ongoing compliance with findings of the Risk Identification process, around the project category, the nature, physical location and sector and the host country.

All relevant personnel involved in the evaluation and approval process are informed of the Equator Principle requirements and implications of each project, and the Head of Project and Structured Debt (or a senior delegate) is required to sign off on the assessment of each project finance transaction against the Equator Principles.

Reporting on performance

Detail on our progress in implementing the Equator Principles is published in our annual Stakeholder Impact Report.

(12 mths to Sept 08)	Number	Loan value - Westpac share	Equator Principles Category
			A	B	C
Transactions closed	15	A$1,315m	0	15	0

In 2008, we participated in 15 project finance transactions located in Australia, New Zealand, UK, Europe and North America. This included one greenfield development, three expansions of existing assets, four projects refinancing existing assets and seven acquisitions.

The projects ranged across a number of asset classes including infrastructure, renewable energy, gas connection, electricity and water utility, ports, toll roads, forestry and oil and gas production.

Our roles in these transactions were as Lead Arranger, Joint Lead Arranger and Underwriter, Sole Lender and Club Participant.

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