Credit Union Announces Dividend

Maleny Credit Union (MCU) has announced an interim dividend rate of 7.57% (fully franked) to its Member Investment Shareholders. The dividends was paid on June 20 and will be fully franked.

In December 2005 MCU offered 1 Million Member Investor Shares and closed its share offer over subscribed. The capital raised has been used to support the ongoing growth of the Credit Union and to boost its prudential reserves.

MCU Board Facilitator, James Davidson, said "the Board was pleased to announce the dividend payment as the first return to our Member Investment Shareholders. The dividend rate of 7.57% (fully franked) is the maximum dividend payable under the Offer Information Statement and shows the Board’s intention to repay the good faith shown by our investing members. The Credit Union’s sound financial position means we are able to afford to pay this dividend and improve member services at the same time. For example, the Credit Union has recently signed contracts for the development of a Visa debit card system for release later this year."

MCU General Manager, John Ford, said the "MCU Member Investment Shares are an innovative capital instrument and were a first for credit unions in Queensland. They provide members the opportunity to receive attractive yields and franked dividends on a twice-yearly basis without compromising the mutual status of the Credit Union. The Credit Union benefits from increased capital, which in turn gives us the ability to extend more loans to members. In essence, the share offering was designed to strengthen the autonomy of the Credit Union and support its future growth."

The next MCU dividend payment is scheduled for 20 December 2006.