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Corporate action events

PPMT: Instalment Call

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PPMT announces a call for the next instalment on partly paid securities: holders pay an amount per share and receive a more fully paid line. It is mandatory, or mandatory with choice where holders may let the shares lapse instead of paying.

Code
PPMT
Usually announced as
MAND or CHOS

What PPMT means

Shares are sometimes issued partly paid: the buyer pays part of the price at issue and the rest in instalments when the issuer calls for them. PPMT is the event for such a call. Holders pay the price per share (:90a::PRPP), and their partly paid securities are usually exchanged for the next, more paid-up line (:92a::NEWO).

The ECB SCoRE rulebook lists PPMT with MAND (a SECU option) and with CHOS (SECU or LAPS). ASX explains the difference: for limited liability companies the call is mandatory, while for no liability companies the holder may choose not to pay, and the LAPS option then forfeits the shares.

When you see it

  • In an MT564 with a payment date and, for CHOS, response and market deadlines. Common in markets with partly paid issues, such as Australia.
  • PPMT vs RHTS and EXRI: a rights subscription is optional and buys new shares; an instalment call completes payment for shares already held.

What to do next

  • Make sure cash is available on each account for the call amount; for MAND it is debited without an instruction.
  • For CHOS, get the holder’s decision and instruct with an MT565 before the deadline. Not paying can mean the shares are forfeited.
  • On the MT566, reconcile the cash debit and the exchange of the old line for the new one.

Where it appears in MT and ISO 20022

MT (ISO 15022)

  • MT564 sequence A (GENL), :22F::CAEV//PPMT with :22F::CAMV//MAND or //CHOS; options :22F::CAOP//SECU or //LAPS
  • MT565 and MT566 sequence A, :22F::CAEV//PPMT

MX (ISO 20022)

  • seev.031 CorpActnGnlInf/EvtTp/Cd = PPMT (checked in seev.031.001.15), with the flag in CorpActnGnlInf/MndtryVlntryEvtTp/Cd
  • The same CorpActnGnlInf/EvtTp/Cd = PPMT appears in seev.033 (instruction) and seev.036 (movement confirmation)