WELLINGTON, New Zealand--Fletcher Building Ltd. said its lenders have agreed to relax financial performance conditions while it faces a difficult business environment this year and next.

New Zealand's largest construction company said on Wednesday it won't pay dividends if it utilizes the easier covenants that are available until the end of 2021.

The company said it expects to be compliant with its regular covenants as of June.

A decision in August on paying a dividend for the 2020 financial year will also hinge on business conditions and outlook, Fletcher Building said.

The amended covenants reduce the required number of times that earnings cover interest payments on the company's debt.