Stanbic IBTC Bank, Nigeria, on Thursday declared an interim dividend and has offered shareholders the option to receive scrip dividends instead of cash dividends over the next three years.
Stanbic IBTC declared an interim dividend of 0.60 naira for its half-year to June 30. It set a reference price of 39.45 naira for the scrip issue, compared with Thursday’s share price of 40.02 naira.
The mid-tier lender, which is part of South Africa’s Standard Bank, did not give a reason for the move.
“Shareholders have a choice of receiving dividends declared by the company, up to year 2020, either in cash or may elect to receive their dividends as new ordinary shares in the company,” the bank said.
Stanbic shares have gained 167 percent so far this year, outperforming the broader index, which is up 32 percent.
Nigerian companies have been struggling in an economy battered by low oil prices. Companies typically use scrip dividends to conserve cash.