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.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
Dividend clawback — With respect to a project financing, an arrangement under which the sponsors of a project agree to contribute as equity any prior dividends received from the project to the extent necessary to cover any cash deficiencies. The New York Times… … Financial and business terms
dividend clawback — An arrangement under which sponsors of a project agree to contribute as equity any prior dividends received from the project to the extent necessary to cover any cash deficiencies. Bloomberg Financial Dictionary An arrangement by which the… … Financial and business terms
dividend clawback — An arrangement by which the sponsors of a project agree to use dividends they previously received from the project to cover any subsequent cash deficiencies … Euroclear glossary
dividend clawback — Fin an agreement that dividends will be reinvested as part of the financing of a project … The ultimate business dictionary
clawback — 1) The ability to recover prior project cash flow that may have been distributed or paid away as dividends to sponsors. Bloomberg Financial Dictionary 2) A dividend clawback is an arrangement whereby the equity owners commit to use dividends they … Financial and business terms
Tax Clawback Agreement — An arrangement whereby the tax benefits received from a given venture are reinvested in the venture to cover any cash shortages. A tax clawback is just one of many types of clawback arrangements, which cover various distributions such as profits … Investment dictionary
Возврат дивиденда — в проектном финансировании соглашение, по которому спонсор проекта соглашается внести в качестве собственного капитала любые предыдущие дивиденды от проекта в объеме, необходимом для покрытия нехватки наличности. По английски: Dividend clawback… … Финансовый словарь
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