Directory:Arab African International Bank

“Arab African International Bank” (commonly known as AAIB) was founded in Egypt in 1964 by Special Law No. 45. AAIB’s main shareholders are the Central Bank of Egypt(CBE) and the Kuwait Investment Authority (KIA), each holding a 49.37% stake. Since its establishment, AAIB has been mostly known across the region for its core competencies in Corporate Banking and Treasury Services.

AAIB’s roots date back to the early 1960s, where it was founded to meet the development needs of the Arab world and Africa, as one of the material expressions of the then rising concept of Arab Nationalism. Originating in Egypt, it rapidly expanded into Lebanon, Oman, Dubai, Sudan, Bahrain, London and New York City, where it conducted its regional and global operations. Following a few decades of rapid international expansion, the 1980s Sovereign Debt Crisis took its toll on AAIB’s operations worldwide. This prompted a major strategy shift, which focused on an aggressive expansion of operations within Egypt and shrinking overseas operations. Maintaining its financial integrity and solid base, it began diversifying its activities, increasing its customer base, expanding its branch and ATM networks and pioneering new and innovative banking products and services. The end result of its unprecedented growth strategy, AAIB transformed itself from a bank to a full-fledged financial group with activities in Corporate Banking, Retail Banking, Wealth Management and Investment Services.

AAIB’s Retail Banking & Wealth Management network of 62 branches is spread nationwide, providing clients with AAIB’s entire products services array. AAIB developed new business arms to that effect. The Banks growth was propelled in 2008 with the establishment of four subsidiaries; Arab African Investment Holding (AAIH), Arab African Investment Management (AAIM), Arab African International Securities (AAIS) and Arab African International Mortgage Finance (AAIMF). The establishment of which transformed AAIB from a Bank to a full-fledged Financial Group to become Egypt’s fastest growing bank in terms of size and profitability, with a compounded average growth rate for deposit and loan portfolios that has consistently outperformed market norms.

AAIB was the first to embrace the idea of Corporate Social Responsibility (CSR) being an integral component of its Core Values System. Applying this with a distinctively unique approach, AAIB is considered as a trendsetter for Sustainable Finance with Value Creation.

Arab African International Bank Logo

Arab African International Bank Logo

Arab African International Bank History

1960s

The idea to establish a bank that embodies the spirit of Arab Nationalism – one that was prevalent during the 50s and 60s under the leadership of Egyptian President Gamal Abdel Nasser - became a reality during the First Arab Summit Meeting held in Cairo’s Nile Hilton Hotel. The concept behind the establishment of what was initially known as “Arab African Bank” was to put up a first of its kind capital contribution by Arab Countries that would serve as a financial backbone that invests in the economic development of Arab and African countries.

The Bank was established in 1964 by Special Law No. 45 with its headquarters located at 44, Abdel Khalek Tharwat St., one of Cairo’s most prestigious districts.

The Bank’s Board of Directors was elected in December 1964. Its offering was run by Banque Misr, Egypt’s leading bank at the time. A Private Placement was arranged and key regional banking and finance institutions were offered significant stakes in The Bank. Upon the close of the offering, The Bank’s shareholders comprised Egypt (one third), Kuwait (one third), Iraq, Algeria, Jordan, and Qatar, with a total paid up capital of GBP10 million.

Upon the close of capital raising activities, The Bank then set out to begin fulfilling its mission throughout the region, through contributing heavily to development activities, initiating various banking activities and establishing companies and banks to finance development projects. From early on the Bank’s focus was placed on regional, and subsequently, international expansion. In 1965, The Bank sent delegations across the region to identify development and investment opportunities alike, which was quickly followed by the establishment of AAB’s first regional branch in Beirut, Lebanon in 11966.

1970s

In 1970 AAIB established its second regional branch in Dubai, United Arab Emirates; and the third in Muscat Oman in 1973. In 1974 the Bank expanded its scope by establishing a Joint Commercial Bank “Arab African Bank in Mauritania” in West Africa, whose shareholders were the Central Bank of Mauritania, with a share of 51% and Arab African Bank, with a share of 49%. That same year, the Bank established its fourth branch in Abu Dhabi. In 1979, ‘Bahrain Arab African Bank’ was established. The Bank also established new branches in Al Hamra, Beirut and in Alexandria, Egypt.

In 1975, The Bank participated for the first time in arranging two international syndicated loans. The first for the Central Bank of Iraq for US$500 million, and the second for the National Company for Oil and Gas Sonatrach in Algeria for US$100 million, alongside financing the establishment of a sugar processing plant in Kassala, Sudan. In December 1975, The Bank established a representation office in Khartoum to monitor and evaluate their progress and investments in the area.

The Bank went through a number of capital increases to accommodate its rapid growth. In 1974, it increased its initial capital of GBP10 million to GBP20 million, which was limited to its existing shareholders only. Worthy of note is The Bank’s currency shift, which took place in 1976. The Bank’s standardised currency was the GBP. This resulted in an efficiency loss, since the vast majority of the Bank’s activities and transactions were being conducted in US$. This prompted the Bank to use US$ as its standardised currency as of January 1977. The currency shift resulted in The Bank’s capital changing from GBP 20 million to US$ 40 million. The Bank underwent another capital increase in 1978, raising its capital from US$40 million to US$100 million. The capital increase also saw the advent of a new shareholder, Al Jazeera Bank of Jeddah, in addition to the original founders of the Arab African International Bank.

In 1977, The Bank decided that in order to more accurately reflect its expanding scope of business, it would change its brand name from “Arab African Bank” to “Arab African International Bank”. Operations under the new brand name commenced on the 1st of July 1978, and continue to do so to this day. The Bank also introduced computers to its banking operations during that year.

The late 70s marked the beginnings of a new era in The Bank’s operations, driven by an aggressive regional and international expansion strategy. It established representation offices in London and New York, and began procedures to establish an office in Amman, Jordan and transformed the Muscat, Oman branch to become an Omani Joint Stock Company.

Until that time, The Bank’s shareholders consisted of the Central Bank of Egypt(CBE), Kuwait Investment Authority(CBE), Iraq’s Rafedeen Bank, The Ministry of Finance in Jordan, Central Bank of Algeria, The Ministry of Finance in Qatar and Al Jazeera Bank. However, that year marked a change in the ownership structure, with Rafedeen Bank’s 10% stake being reduced to 1% due to its decision to not participate on the last capital increase. The year also saw the Arab African Bank Oman being sold to private investors.

1980s

The Bank established a new branch in the Bahamas and a representation office in Tunisia. 1982 saw the establishment of ‘Misr Arab African Bank, which was later sold to ABC. That year was also the year The Bank moved its headquarters to Garden City, Cairo. In 1983, it transformed its representation office in London into a fully operating branch. In 1984,The Bank established its second branch in London and a fourth branch in Egypt. Also, the representation office in New York began a transformation; first into an Agency, and subsequently to a fully operational Branch.

To once again accommodate its growing volume of business, The Bank underwent another capital increase in 1981, raising its capital from US$100 million to US$125 million. This was followed in 1983 by yet another capital increase, raising it from US$125 million to US$200 million.

1986 marked the beginning of a rough patch for The Bank; one that would continue until 1995. Due to external circumstances, which included regional and global economic crises, The Bank went through several setbacks. However, it reacted swiftly by changing the Board of Directors and implementing a strategic plan to bring The Bank back on track.

It was during that time that Egypt and Kuwait agreed to establish a non-refundable emergency fund that would inject liquidity into The Bank and allow it to continue its operations. The fund had a total value of US$500 million

1990s

The crises on the international scene continued with the First Gulf War in 1990. The invasion of Kuwait by Iraqi troops and the subsequent international military operation led The Bank to suffer from capital shortages and operational hurdles. However, the shareholders immediately covered the capital shortages and The Bank continued to operate smoothly during these tough times.

In 1992, The Bank began diversifying its project finance portfolio through investing in companies such as El Shams Hotels and Tourism and El Gezira Sheraton Hotel. Additionally, The Bank was granted a license to deal in Egyptian Pounds as well as US$. The Bank utilized its emergency fund to settle its debts and expand its banking activities even further. This was also the year The Bank became one of the prime runners of the then ‘Privatization Programme’ initiated by the Egyptian Government.

The Bank introduced its Private Banking and Investment Banking services in 1993, alongside establishing new branches in Mohandessin, Maadi and Zamalek. This was followed in 1995 by establishing new branches in Hurghada and Sharm El Sheikh.

2000s

In 2002, Hassan Abdalla was appointed as the bank’s Vice Chairman and Managing Director. Upon assuming this position, Abdalla began to shift the focus on cementing AAIB’s position by acquiring a significant share of the Egyptian market and expanding The Bank’s client base. With Abdalla at the helm, AAIB began a new era marked by unlimited growth across its lines of business. During that time, AAIB’s branch network expanded from 11 branches to 55, with a number of first to market innovative products introduced in the Egyptian financial sector.

AAIB’s acquisition of Misr America International Bank (MAIB) – finalized by the end of 2005 as the first market based private acquisition in the Egyptian market – resulted in substantial growth and a higher market share for AAIB. Worthy of note is the fact that during the merger, all resources were properly utilized and successfully integrated into the new entity, without the loss of a single resource.

During this period, AAIB began expanding further to become a fully integrated financial group, through the establishment of its subsidiaries, Arab African Investment Holding (AAIH), Arab African International Securities (AAIS), Arab African Investment Management (AAIM), and Arab African International Mortgage Finance (AAIMF).

Today, AAIB continues to build on its pioneering position in the Egyptian market. Through consistently introducing innovative products and services and raising the bar of its quality of customer service and care, it is one of Egypt’s leading financial institutions characterized by confidence and distinction in all its activities.

Corporate Banking

Since its establishment, Arab African International Bank’s (AAIB) track record over the years is a clear reflection of its core competency in Investment Banking, Corporate Banking, Treasury Services and Bond Issuance market. Positioning The Bank as a high-end service provider of innovative and customized solutions to leading corporations and international investors. Companies continuously encounter a multitude of opportunities to increase business volume, restructure or replace debt or issue new financial instruments. AAIB has been developing an unmatched track record over the years in managing, structuring, arranging, underwriting and participating in a large number of landmark financial advisory and valuations, equity and debt raising transactions executed in the Egyptian capital market:

• Syndicated Loans and mega project finance deals that include, but are not limited to, fields such as infrastructure, construction, petrochemicals and oil & gas.
• Various debt instruments, mainly corporate bond issuance and Asset Backed Securities with a market share of 75% of issued bonds in the Egyptian market.
• Valuations for major mergers and acquisitions transactions.
• Debt and equity raising through private placements and public offerings.

Capitalising on its experience in preparing documents for soliciting required approvals in addition to its strong working relationship with all regulatory bodies and top support institutions and via the bank’s engagements, it has established a strong relationship with Egyptian Financial Supervisory Authority "EFSA", Egyptian Stock Exchange "EGX" and MCDR, AAIB developed its unique footprint among the major players in the Egyptian Market in the field of Finance.

Having presence in the Arab area and through its widespread international channels, the bank has established strong corporate relations in Egypt and the Middle East alongside its above mentioned record. AAIB’s branches in the UAE are considered the springboard for expansion into Gulf Cooperation Council (GCC) Countries.

Margin Lending

Margin Lending is also one of AAIB’s unique services. It offers investors the opportunity to increase their earning power, allowing them a chance at higher investment returns based on leveraging prime liquid securities; actively traded on the Egyptian Stock Exchange (EGX).

Credit Facilities

AAIB offers its clients an array of specialized Corporate Banking services and products that can be tailored to suit each client’s needs and preferences. The Bank offers both Short-Term and Medium-Term Credit Facilities.

Short –Term Credit Facilities

Short-Term credit facilities extend for a period of up to one year, and can be used to finance current assets of the trading cycle.

Medium-Term Credit Facilities

Medium-Term credit facilities extend for a period of one to seven years, and are available for investment requirements.

Trade Finance

The Bank’s solid financial standings make it the go to bank for Trade Finance Services. Its Trade Finance Services include, importing and exporting documentary credits, Acceptances under Trade Transactions, Stand by LCs, all Types of LGs, Bid Bonds, Performance Bonds, Advance Payment Guarantees, Final Bonds, and Financial Guarantees.

Depository Products

The Bank offers a full range of Depository Services to its clients. Depository Services range from Saving Accounts, Current Accounts, Green Pearls, Time Deposits and Certificates of Deposits.

Structured Finance

The Bank also specializes in Structured Finance; business transactions of a complex nature involving multiple parties. Regardless of the complexity of the business opportunity, AAIB brings its years of expertise to bear in restructuring complex transactions in a simple and logical manner.

Fix & Forward

To hedge against Foreign Exchange Rate fluctuations, The Bank provides its clients with its Fix & Forward Contract Service. Fix & Forward Contracts are widely used by corporations who need to monitor FX fluctuations and assess their impact on the profitability of various transactions. Corporate Transactions include Letters of Credit, Documents for Collection, Credit facilities - all in foreign currency.

Other Corporate Services

The Bank provides its clients with bills and cheques collection, transfers, bank drafts, certified cheques and payroll services for businesses.

Retail Banking

AAIB Retail Banking’s guiding principal is providing clients with a unique banking experience and constant innovation in products and services. The Bank’s client-centric products & services’ single aim is to make customers’ financial lives better. With an ever-growing network of 54+ branches and 246+ ATMs nationwide, The Bank takes it upon itself to expand its reach to wherever it is needed.

AAIB offers extensive products and services that meet individual financial needs. From daily banking needs of accounts, to saving and investment through long term deposits and mutual funds, to borrowing for any personal needs, to various types of cards - credit, debit and prepaid, AAIB offers a full suite of products and services that covers every requirement clients may have. The Bank is widely regarded as a pioneer in more ways than one. It was one of the first banks to issue & acquire Credit Cards in Egypt, to introduce Smart Chip, Verified by Visa (VbV) and PayWave technologies, to introduce mini Visa Credit Card and 4U Visa prepaid cards, to offer Green Pearls long term foreign currency deposits, to be the exclusive banking partner of Western Union and to introduce Value Plus save & live proposition, among many other firsts.

Accounts and Deposits

AAIB Savings & Current Accounts offer flexibility and convenience to manage daily transactional banking needs while offering very attractive interest rates in multiple currencies. The Bank’s different types of Accounts provide clients with all transactional banking needs: foreign exchange, cheques, fund transfer, bank drafts, certified cheques, among others.

Emerald Certificate of Deposits (CD) and Green Pearls Time Deposit fit the long term investment planning need for every individual situation: multiple currencies, multiple tenors, multiple interest payment options, one of the best interest rates in the market. Consumer Loans – Unsecured

AAIB’s wide range of consumer loan products are designed to make The Bank a partner with clients in fulfilling their dreams. The Bank offers flexible and customer-friendly Personal Loan and Auto Loan offer high loan amount, long repayment period at attractive interest rates.

Value Plus Secured Loan Bouquet

Value Plus is devised to cater to every customer’s unique lifestyle need with its extensive bouquet of products. Its Save & Live proposition enables spending while keeping clients’ savings intact.

Cards

Being a pioneer in the cards space, The Bank offers a wide variety of credit cards and propositions – both Visa and MasterCard, in EGP and USD. Visa bouquet consists of Classic, Gold, Platinum, Mini and has industry-first features like Paywave, Verified by Visa (VbV), Smart Chip enabling the highest security and convenience for customers.

AAIB Visa 4U Prepaid Cards offer a range of card types for a variety of purposes: Travel card, Internet card, Gift card, Household card and Teens card. Offering both personalized and pre-personalized option makes it an easy to get and easy to use card. Payroll Services

AAIB Payroll Solution offers a win-win for both the employer and the employee. Employers reduce their payroll management expenses and risk. Employees get a privileged banking experience.

Direct Banking Channels

AAIB eBanking and Phone Banking offer a range of services to empower the customer to do his banking at his time, from his place.

Electronic Bill Payment (Fawry) is a convenient, time saving and secure way of paying a variety of bills – phone, prepaid, water & electricity, etc.

Western Union

In 2012, AAIB became a direct agent for Western Union Money Transfer Services, after being a sub-agent since 2005. Through 61 of its branches deployed nationwide, customers can send and receive transfers to and from over 200 countries with over 463,000 agent locations.

Merchant Services

Merchant Loans

AAIB offers a unique Merchant Loan program to offer a simple and fast business loan to its card acquiring merchants.

Click2Shop

Click2Shop is an E-Commerce Gateway that enables merchants to accept online payments via their websites. The program is securely coded by MasterCard and authorized license by Visa and is the ideal solution to Internet based payments.

Wallety Online Payment

Wallety, the latest innovation in online payment solutions is offered by AAIB to assist Internet users, e-business owners, and ensure ultimate safety of their online payments.

Wealth Management

In order to provide its High Net Worth (HNW) Clients with a ‘One-Stop Banking Shop’, Arab African International Bank launched its unique Private Banking Services under the Corporate Brand ‘Wealth Management‘.

The launch of Wealth Management in May 2010 focused on offering top of the line tailored financial solutions and innovative services that help HNW clients manage and grow their wealth and investments.

Wealth Management expanded by adding the ‘Visa Platinum Card’ to reach clients interested in the features offered by the card, including a higher credit limit, competitive interest rates, in addition to the facilitation of travel arrangements and the possibility of securing a substitute card within 24 hours and a cash amount of $5000 in case of card loss.

In 2012, AAIB Wealth Management expended its suite of services to include Concierge Services through Quintessentially. The service catalogue ranges from travel and holidays arrangements to VIP booking at the finest restaurants, spas, clubs and hotels; exclusive access to A-list events, parties and galas; art consultancy; shopping and styling services, to name a few.

From a Bank to a Financial Group

In 2005, AAIB fully acquired Misr America International Bank (MAIB). The merger, which was finalized in 2005, was the first market based private acquisition in the Egyptian market. The ensuing entity was AAIB’s first in a series of aggressive moves in acquiring an even larger share of the Egyptian market. With the groundwork laid on the Retail Banking level, AAIB’s next step would be to become a fully integrated Financial Group. Leveraging its already renowned position as a pioneer in Corporate Banking and its established position as a leader in Retail Banking, the Bank began establishing its new business arms in 2008. Arab African Investment Holding (AAIH) became the Group’s major investment arm and manages Arab African Investment Management (AAIM) and Arab African International Securities (AAIS) and Arab African International Mortgage Finance (AAIMF).

AAIB’s Subsidiaries

Arab African Investment Management

Arab African Investment Management (AAIM) is a specialized asset management firm that covers the MENA region. AAIM offers a wide range of products including equity, money market and fixed income funds, in addition to a variety of portfolios catering to the needs of each investor. AAIM tailors a portfolio of investments balancing risk and return to meet each individual client's investment goals.

To date, AAIM manages four funds, together with investment portfolios, on behalf of institutional and private investors. 2009 marked a series of milestones for AAIM. The Group’s ‘Shield Equity Fund’ was recognized by The Egyptian Investment Association (EIA) as the best performing open end equity fund for achieving 33% annual growth. The year also marked the launch of the ‘Juman Money Market Fund’, which was oversubscribed in less than a week, and the launch of the ‘SMEs Money Market Fund’.

In 2012, ‘Gozoor Fixed Income Fund’ was launched. A fund that invests in a portfolio of fixed income securities that include treasury bonds, corporate bonds, repurchase agreements, mortgage backed securities and time deposits.

Arab African International Securities

Arab African International Securities (AAIS) was established in 2007 and acquired Borak Securities in 2008. Subsequent to a management reshuffle, human resources optimization, re-location and re-branding, AAIS became an integral arm of AAIB’s Financial Group. AAIS’ ranking has improved from 94th place in 2008 to 37th in 2009 and most recently to 12th in 2012.

The firm offers a full range of brokerage activities including same-day trading, online trading and margin lending, offering its customers secure instant and integrated trading via the internet at a competitive rate.

Arab African International Mortgage Finance

Arab African International Mortgage Finance is a leading mortgage finance company and a subsidiary of one of the most renowned financial institutions in Egypt “Arab African International bank”. AAIMF is one of the fastest growing companies and is ranked amongst the top mortgage finance providers in Egypt.

AAIMF is a finance provider for real estate purchasing and portfolio acquisition. It boasts a diverse product mix with an innovative lending platform. With the most experienced professionals, AAIMF has worked on tailor made mortgage finance systems, whereby provided services are hassle-free and efficient.

In Numbers – A Decade of Growth

The bank recorded significant qualitative and quantitative growth figures during the decade ending 2012. It managed to grow its equity base from US$110 million in 2002 to reach US$900 million in 2012. Footings increased from US$1 billion in 2002 to US$8.2 in 2012. Deposits and Loans grew from US$500 million in 2002 to reach US$6 billion in 2012 and US$280 million in 2002 to reach US$3.4 billion, respectively. The Bank’s Profits increased from to US$144 million in 2012, up from US$9 million in 2002.

AAIB expanded its lines of business from Corporate, Investment Banking and Treasury to encompass Corporate Finance, Investment & Treasury, Retail Banking, Wealth Management and Western Union Services. AAIB also went from being a Corporate to one of Egypt and the region’s most distinguished Corporate Banks, closing a number of award winning structured finance deals, closing the biggest syndicated deal in Egypt and holding a majority share in the Egyptian Debt Market.

The Bank grew its branch network from 10 in 2002 to reach 71 in 2012, whilst also increasing its ATM Network from 20 to 242 during the same period of time. Its customer base also increased from 25,000 in 2002 to reach 176,000 in 2012. In order to better serve

Sustainable Finance & Corporate Social Responsibility

AAIB set the trend for Sustainable Finance with Value Creation in Egypt and the region as a whole. The Bank’s commitment to Sustainability and Corporate Social Responsibility (CSR) began in 2002, which coincided with the bank’s adoption of an aggressive growth strategy that ultimately made it one of the fastest growing banks in Egypt.

At AAIB, CSR springs from a conscious conviction that banks should not only grow financially, but also develop a deeper commitment to help the community’s growth. The Bank’s first CSR mandate took the form of strategic philanthropy, with a strong focus on the community in two main areas: Health and Education.

The establishment of We Owe it to Egypt foundation in 2007 is considered the crowning achievement in AAIB’s efforts, being the first social development foundation of its kind established by a financial institution in the region. In recognition of its positive impact on the community, We Owe it to Egypt received the prestigious Arabia CSR Network Award 2012; the most recent in a string of awards over the years.

The Arab African International Bank Award (AAIB Award) is another of AAIB’s trendsetting CSR initiatives. Launched in 2003, it is the first of its kind worldwide; an annual banking competition for university undergraduates that fosters and rewards academic excellence within the financial sector.

At AAIB, CSR is an ongoing learning journey that pushes the bank to continuously evolve its sustainability measures and practices across core business operations.

AAIB’s sustainability efforts focus on areas of immediate relevance to the organisation’s sphere of operations. In order to do so, AAIB became the first bank in Egypt and the second in the MENA region to become a signatory of the Equator Principles in 2009. This provided the bank with benchmarks for assessing environmental and social risks when offering corporate finance.

Further asserting its commitment to sustainable development, AAIB adheres to Global Networks and International Frameworks that compliment and enhance its own business values, through becoming the first bank in Egypt to join the United Nations Global Compact in 2005; and the London Benchmarking Group in 2007.

Realizing the importance of holistic disclosure, in 2010 AAIB became the first bank in Egypt to go beyond the standard regulatory disclosure of financial and governance aspects and released its annual Sustainability Report in 2010, Finance with Value Creation, detailing the added value created for each of its six stakeholders.

At AAIB, Sustainability was - and still remains - an essential pillar of its day-to-day business practices in terms of giving back to the community and being a socially conscious organisation. AAIB pioneered Sustainable Finance with a vision of re-conceptualizing the industry’s mindset and practices to grasp the value of pursuing profits, while intrinsically factoring in social, environmental and governance dimensions in its day-to-day business practices.

We Owe It To Egypt

In 2007, Arab African International Bank established its flagship Foundation: We Owe It to Egypt. It is the first foundation for social development to be established by a bank in Egypt, four years after its launch as an initiative in 2003.

We Owe it to Egypt is a foundation dedicated to improving the quality of life of every Egyptian through creating centers of excellence and making world-class health care and education accessible to every Egyptian. We Owe it to Egypt paved the way for other financial institutions not only to establish foundations, but also to heavily contribute to improving health and education in Egypt.

In recognition of its efforts across the region, We Owe it to Egypt was awarded for “Best Corporate-NGO Collaboration” in 2012, by the Arabia CSR Network.

International Frameworks

As of 2005 Arab African International Bank took solid steps to join a number of Global Frameworks to further assert its ongoing commitment to Sustainability across all its activities. The Bank sees its adherence to sustainability international best practice as a pillar that compliments its stringent internal self-regulation policies.

United Nations Global Compact

In 2005, Arab African International Bank became the first Egyptian Financial Institution to sign The United Nations Global Compact(UNGC) as a declaration to its commitment to a set of universal business codes. The UNGC is a strategic policy initiative for businesses that are committed to aligning their operations and strategies with ten universally accepted principles in the areas of human rights, labor, environment and anti-corruption.

The UNGC’s mandate is to ensure that markets, commerce, technology and finance advance in ways that benefit economies and societies everywhere and to align business practices with ten principles promoting human rights, labor standards, anti-corruption and the environment.

In 2012, the UNGC named AAIB among 37 out of its 7,000 member corporates as a “Best Practice” institution for the year. This is the 2nd year in a row that AAIB is recognised for its efforts. AAIB was named as “Best Practice - Financial Markets Institution” amongst several Multinational Blue Chip Corporations with its case study, ‘Education, Community and Social Equality.’

London Benchmarking Group (LBG)

The Bank joined the London Benchmarking Group (LBG) in 2007. The LBG is a global organisation that provides businesses with models and tools to accurately measure and report on the impact of their community investments. AAIB is one of 300 companies around the world utilizing the LBG Model, one that is considered the international standard for measuring and managing community investments.

The Equator Principles (EP)

To further its commitment towards the environment and the community, AAIB joined The Equator Principles in 2009. The Equator Principles (EPs) is a credit risk management framework for determining, assessing and managing environmental and social risk in Project Finance transactions. Project Finance is often used to fund the development and construction of major infrastructure and industrial projects.

The EPs are adopted by financial institutions and are applied where total project capital costs exceed US$10 million. The EPs are primarily intended to provide a minimum standard for due diligence to support responsible risk decision-making.

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