Dividend Clawback

外汇网2021-06-19 16:35:22 79

An arrangement under which those financing a project agree to contribute, as equity, any prior pidends received from the project to cover any cash shortages.

Taobiz explains Dividend Clawback

When there is no cash shortfall, those investors who provided funding are able to keep their pidends. A pidend clawback arrangement provides incentive for a project to remain on budget so that investors do not have to return pidends received prior to a cost overrun.

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