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.

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. . 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

  • Corporate action — Corporate finance …   Wikipedia

  • Financial ratio — Corporate finance …   Wikipedia

  • Corporate finance — Corporate finance …   Wikipedia

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