Dividend policy
In the near term, the Company intends to devote its generated cash flows to continue growing the business. The Company does not plan to distribute dividends during the next three years. As of the date of this Prospectus, the Company has not established a specific dividend policy yet. After the aforementioned period, the Company will assess whether to introduce a dividend policy, depending on its future results and financing needs.
The Company’s ability to distribute dividends will depend on a number of circumstances and factors, including (but not limited to) the amount of distributable profits and reserves and its investment plans, earnings, level of profitability, cash flow generation, restrictions on payment of dividends under applicable law (both on the Company and on any Group entity), compliance with covenants in debt instruments such as our project financing (which restrict our ability to make distributions to our shareholders[1]), the level of dividends paid or shares repurchased by other comparable listed companies doing business in Spain, requirements considered by international credit rating agencies to assign investment grade ratings and such other factors as the Board of Directors or the General Shareholders’ Meeting may deem relevant from time to time. In that regard, payment of dividends is generally proposed by the Board of Directors and must be approved by the General Shareholders’ Meeting.
[1] The covenants in such project financing arrangements restrict the ability of the relevant SPVs to distribute funds to the Company unless specific financial thresholds are satisfied on specified dates.
