Corporate action events
PINK: Pay In Kind
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PINK announces an interest payment made in any form other than cash, typically additional bonds of the same issue credited to holders. It is mandatory: no instruction is needed.
- Code
- PINK
- Usually announced as
- MAND
What PINK means
Some bonds, often high-yield or restructured debt, allow or require the issuer to pay interest in kind instead of cash. With PINK, holders receive extra securities in proportion to their holding, expressed as additional securities for existing ones (:92a::ADEX).
The ECB SCoRE rulebook lists PINK as MAND with a SECU option (credit of the eligible quantity times ADEX) or an OTHR option; Clearstream states it uses SECU.
When you see it
What to do next
- No instruction. On the MT566, reconcile the quantity credited (sequence D1) with the eligible balance times the announced rate, including how fractions are handled.
- Book the credit as income in kind at the value the tax rules require; interest paid in kind is usually still taxable income for the holder, so check the tax treatment and any withholding in the notification.
Where it appears in MT and ISO 20022
MT (ISO 15022)
- MT564 sequence A (GENL),
:22F::CAEV//PINKwith:22F::CAMV//MAND; sequence E1,:92a::ADEX - MT566 sequence A,
:22F::CAEV//PINK