Payment in Kind (PIK) interest accrues and capitalises periodically over the life of the debt instrument, thus increasing the underlying principal (i.e. compound interest). This is typical of development loans where there is no income at the asset.
Global Definitions Database
Payment in Kind (PIK) interest/ Accrued Interest
Source: INREV | Date: 26 February 2020 | ID: D0710 | Version: 2