The Directors intend for the Company to pay a regular dividend. This dividend policy will reflect the long-term earnings and cash-flow potential of the Group, consistent with maintaining sufficient financial flexibility in the Group.
It is therefore the Directors’ current intention to target an initial pay-out ratio of 30 per cent. of prior year net income. The current intention of the Directors is that the first dividend to be declared by the Company following Admission will be a final dividend in respect of the financial year ending 31 December 2018. The Company may revise its dividend policy from time to time.
The declaration and payment by the Company of any future dividends and the amounts of any such dividends will depend upon the Group’s results, financial condition, future prospects, profits being available for distribution, consideration of certain covenants under the terms of outstanding indebtedness, and any other factors deemed by the Directors to be relevant at the time, subject always to the requirements of applicable laws. The ability of the Company’s microfinance institutions to make payments to the Company depends largely on their respective financial condition and ability to generate profits, and may be restricted from doing so by contract, including other financing arrangements, charter provisions, other shareholders or the applicable laws and regulations, including but limited to, distributable reserves or the maintenance of statutory reserves at its deposit-taking microfinance institutions, of the various countries in which they operate.