The pricing of sustainable syndicated loans

Alves, Paulo; Gonçalo, Jorge; Pinto, João

Publication

The pricing of sustainable syndicated loans

2024-02-04Conference paper not in proceedings

dc.contributor.author	Alves, Paulo
dc.contributor.author	Gonçalo, Jorge
dc.contributor.author	Pinto, João
dc.date.accessioned	2025-05-27T17:17:35Z
dc.date.available	2025-05-27T17:17:35Z
dc.date.issued	2024-02-04
dc.description.abstract	This paper provides a comparative analysis of sustainable and conventional syndicated loan spreads and pricing. Using a cross-section of 24,962 syndicated loan tranches closed between 2018 and 2022 in OECD countries, we show that sustainable and conventional loans are differently priced, spreads of sustainable versus conventional loans do not differ significantly, and banks rely on contractual, macroeconomic, bank syndicate structure, and borrowers’ characteristics when pricing sustainable tranches. At the deal-level, our results do not support the hypothesis of sustainable debt financing as a mechanism for reducing firms’ funding costs. We also find that economies of scale, institutional, and information asymmetry arguments affect firms’ choice between sustainable and conventional syndicated deals.	eng
dc.identifier.uri	http://hdl.handle.net/10400.14/53447
dc.language.iso	eng
dc.peerreviewed	yes
dc.rights.uri	N/A
dc.subject	ESG
dc.subject	Syndicated loans
dc.subject	Credit spreads
dc.subject	Loan pricing
dc.subject	Cost of borrowing
dc.title	The pricing of sustainable syndicated loans	eng
dc.type	conference paper not in proceedings
dspace.entity.type	Publication
oaire.citation.conferenceDate	2024-06-29
oaire.citation.conferencePlace	Lisbon, Portugal
oaire.citation.title	European Financial Management Association 2024 Annual Meeting
oaire.version	http://purl.org/coar/version/c_970fb48d4fbd8a85