public dividend capital

public dividend capital

A form of long-term government finance which was initially provided to NHS trusts when they were first formed to enable them to purchase the Trust’s assets from the Secretary of State. Public dividend capital (PDC) represents the Department of Health’s (DH’s) equity interest in defined public assets across the NHS.

The DH is required to make a return on its net assets, including the assets of NHS trusts, of 3.5%. For NHS trusts, that takes the form of a variable charge—a PDC dividend—paid twice yearly. Repayments of PDC are made only when the trust has surplus cash—e.g., land sales proceeds not spent on new capital assets. The PDC of an NHS trust applicant for NHS foundation trust status, immediately before authorisation is granted, will continue as PDC under the same conditions for the NHS foundation trust.
Mentioned in ?
References in periodicals archive ?
Another was to have secured the funding, which - with the withdrawal of public dividend capital - we were unfortunately unable to do.
But the spokesperson added: "The Department of Health has been asking for clarification about the scheme and they will decide whether they can support us with the PS100m public dividend capital we're looking for alongside the private finance money.