A capital repayment, in corporate actions, is a payment of cash by a company to its shareholders that is funded from share capital or capital reserves instead of from earnings. It usually follows a capital reduction and may be accompanied by a cut in the nominal value of each share or the cancellation of some shares. See also return of capital.
Custodians process the event as a mandatory corporate action: holders on the record date receive a fixed amount per share on the payment date, with no election to make. The classification matters downstream. A capital repayment is often not subject to dividend withholding tax and instead lowers the cost of the holding, which requires a tax lot adjustment in the investor's records. Announcement data must therefore distinguish it clearly from an ordinary dividend or other shareholder distribution.