Corporate action events
INCR: Increase in Value
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INCR announces that the face (nominal) value of each security goes up while the number of securities in issue stays the same. It is a mandatory event: holders do nothing and the account servicer updates the security or, when the ISIN changes, exchanges the position.
- Code
- INCR
- Usually announced as
- MAND
What INCR means
With INCR the issuer raises the nominal value of each share or bond. A share with a par value of 1.00 might become 1.50, usually because the company moves reserves into share capital. Holders keep the same number of securities; only the nominal per unit changes.
Most INCR events have no movement at all: the notification is for information and static data. Where the market issues a new ISIN for the restated security, the event carries a SECU option that debits the old ISIN and credits the new one in the same quantity (ECB SCoRE rulebook, equities only).
INCR is the mirror of DECR. It is not a split: in a reverse split (SPLR) the nominal goes up because the number of shares goes down, while in INCR the number of shares does not move.
When you see it
- In an MT564 with
:22F::CAMV//MAND, usually with an effective date (:98a::EFFD) and, where the denomination changes, a new denomination quantity (:36a::NEWD) in sequence D. - On equities when a company capitalises reserves into par value instead of issuing bonus shares. If new shares are issued instead, the event is a BONU; Clearstream notes it may announce such cases as CHAN when nothing is credited or as BONU when securities are credited.
- On debt, an increase in principal from capitalised interest is a different event, CAPI.
What to do next
- No instruction is needed. Update the nominal value or denomination in your security master from the effective date.
- If the event has a
SECUoption, reconcile the MT566: a debit of the old ISIN and a credit of the new ISIN for the same quantity. Move open trades and settlement instructions to the new ISIN after the payment date. - Check valuations that use nominal (bonds quoted in percent of nominal, collateral haircuts) on the effective date.
Where it appears in MT and ISO 20022
MT (ISO 15022)
- MT564 sequence A (GENL),
:22F::CAEV//INCRwith:22F::CAMV//MAND - MT566 sequence A,
:22F::CAEV//INCR, when the account servicer confirms a booking (for example an ISIN exchange)