Paid up front

Of Hui’s current estimated $11.5 billion fortune, Forbes calculated that $8 billion is from cash dividends paid to Hui since Evergrande’s 2009 IPO on the Hong Kong Stock Exchange. The real estate developer’s total liabilities have increased every year since it went public, according to its annual reports, but it has paid out a dividend every year except 2016 … “The onus is more on the lenders. If the lenders are aware of the fact that the use of the proceeds is to fund a dividend, they have to be more careful,” says corporate finance consultant Robert Willens.

Forbes

The onus is on the lender but the bonus is with the spender.