Dividend Clawback
An arrangement under which those financing a project agree to contribute, as equity, any prior dividends received from the project to cover any cash shortages. Investopedia Says:
When there is no cash shortfall, those investors who provided funding are able to keep their dividends. A dividend clawback arrangement provides incentive for a project to remain on budget so that investors do not have to return dividends received prior to a cost overrun. Related Terms:
Declaration Date
Dividend
Dividend Yield
Double Taxing
Project Finance |