Oikocredit revised its dividend proposal for 2019 from 1% to 0%.
Social impact investor and worldwide cooperative Oikocredit has revised its dividend proposal for 2019 from 1% to 0%.
The proposal will be made to the cooperative’s members at the annual general meeting (AGM) in June 2020. The members have the final decision on the dividend.
The full effects of the coronavirus pandemic on Oikocredit’s business and financial position are not yet clear, but the cooperative no longer expects to reach its growth and financial return targets for 2020.
Given the ongoing nature of the coronavirus crisis, Oikocredit’s Managing Board believes paying no dividend to members for 2019 would protect its members’ capital and allow the cooperative to continue to support its partners, and in turn, the low-income people hit hardest by the crises.
Thos Gieskes, Managing Director of Oikocredit, said: “Revising our dividend proposal is part of Oikocredit’s proactive response to the unprecedented situation the coronavirus has created for all of us.
“Given the increased economic uncertainty our partners are facing, and therefore Oikocredit is also facing, we believe it prudent to strengthen our reserves and be as prepared as possible for any adverse developments.
“With a strong 2019 behind us, and with the firm backing we continue to receive from our investors, I’m confident Oikocredit will keep delivering on its mission through this troubled period. And that continuity is paramount, especially at a time when our partners and the low-income people they serve need our support most.”