Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/238179 
Year of Publication: 
2020
Series/Report no.: 
NBB Working Paper No. 392
Publisher: 
National Bank of Belgium, Brussels
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 signifi- cantly lower spread, especially when the lender consortium can also be classified 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.
Subjects: 
Paris Agreement
Green Firms
Green Banks
Bank Lending
JEL: 
A13
G21
Q51
Q58
Document Type: 
Working Paper

Files in This Item:
File
Size
652.41 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.