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Sochima Uzonwanne

Sochima Uzonwanne
Current Position

since 7/21

Economist in the Department of Financial Markets

Halle Institute for Economic Research (IWH) – Member of the Leibniz Association

Research Interests
  • supply chain disruption
  • sustainable finance
  • financial stability

Sochima Uzonwanne joined the Department of Financial Markets as a doctoral student in July 2021. His research focuses on supply chain disruption, sustainable finance, and financial stability.

Sochima Uzonwanne received his bachelor's degree from Nnamdi Azikiwe University in Nigeria and his master's degree from Friedrich Schiller University Jena.

Your contact

Sochima Uzonwanne
Sochima Uzonwanne
- Department Financial Markets
Send Message +49 345 7753-752

Working Papers

cover_DP_2024-17.jpg

Environmental Incidents and Sustainability Pricing

Huyen Nguyen Sochima Uzonwanne

in: IWH Discussion Papers, No. 17, 2024

Abstract

<p>We investigate whether lenders employ sustainability pricing provisions to manage borrowers’ environmental risk. Using unexpected negative environmental incidents of borrowers as exogenous shocks that reveal information on environmental risk, we find that lenders manage borrowers’ environmental risk by conventional tools such as imposing higher interest rates, utilizing financial and net worth covenants, showing reluctance to refinance, and demanding increased collateral. In contrast, the inclusion of sustainability pricing provisions in loan agreements for high environmental risk borrowers is reduced by 11 percentage points. Our study suggests that sustainability pricing provisions may not primarily serve as risk management tools but rather as instruments to attract demand from institutional investors and facilitate secondary market transactions.</p>

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