BBVA Group

BBVA has adopted the new revised Equator Principles, as approved and announced in London on 6 July 2006.

The Equator Principles are a voluntary set of social and environmental guidelines applied by a group of 40 financial institutions, leaders in major investment project finance worldwide, in coordination with the International Finance Corporation, an agency attached to the World Bank.

BBVA, which initially subscribed the Equator Principles in 2004, thus makes further inroads in the implementation of its integral strategy of corporate responsibility and in the progressive extension of its business activity, with a global and innovative vision.

BBVA undertakes to uphold the criteria underscoring the Equator Principles in those financing projects in which it is involved that exceed the sum of $10m (this threshold has been lowered following the review, from the initial amount of $50m).

The Equator Principles are applicable to all countries and sectors, and the main changes that have been introduced by the latest review are as follows:

They apply to all project financings with capital costs above $10m.

They now also apply to project finance advisory activities.

They now specifically cover upgrades or expansions of existing projects where the additional environmental or social impacts are significant.

The approach in applying the Principles to countries with existing high standards for environmental and social issues has been streamlined in order to avoid overlaps in project appraisals that have already been provided for in local legislation.

Each EPFI is now required to report on the progress and performance of Equator Principles’ implementation on an annual basis.

Stronger and better social and environmental standards, including more robust public consultation standards.

The implementation of the Equator Principles constitutes a giant step forward for the financial sector in the development of a common framework for addressing the social and environmental aspects of project finance, enabling financial institutions to improve the appraisal, mitigation, documentation and monitoring of the social and environmental risks associated with the financing of projects.

In short, through its adherence to the revised Equator Principles, BBVA ratifies its commitment to international leadership in matters of Corporate Responsibility, consistent with its unremitting quest to align itself with the needs of its stakeholders – customers, shareholders, employees and suppliers – and of the societies in which it pursues its business.