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When green meets green

Hans Degryse (), Roman Goncharenko, Carola Theunisz () and Tamas Vadasz ()
Additional contact information
Carola Theunisz: KU Leuven
Tamas Vadasz: KU Leuven

No 392, Working Paper Research from National Bank of Belgium

Abstract: What is the impact of environmental consciousness (i.e., being green) as borrower and as lender on loan rates? We investigate this question employing an international sample of syndicated loans over the period 2011-2019. We find that green firms borrow at a signicantly lower spread, especially when the lender consortium can also be classifed as green, i.e., when \green-meets-green". Further tests reveal that the impact of \green-meets-green" became significant and large negative only after the acceptance of the Paris Agreement in December 2015. We argue that this is evidence for lenders responding to policy events which affect environmental attitudes.

Keywords: Paris Agreement; Green Firms; Green Banks; bank lending (search for similar items in EconPapers)
JEL-codes: A13 G21 Q51 Q58 (search for similar items in EconPapers)
Pages: 58 pages
Date: 2020-10
New Economics Papers: this item is included in nep-ban, nep-ene, nep-env and nep-res
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Persistent link: https://EconPapers.repec.org/RePEc:nbb:reswpp:202010-392

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