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Corporate action events

PRII: Interest Payment with Principal

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PRII announces, in one event, an interest payment and a reduction of the amortised value of a pool-factor security. It is still in the MT564 code list, but no longer in the ISO 20022 seev.031 code list, and many markets announce the two parts as INTR and PRED.

Code
PRII
Usually announced as
MAND (CHOS with a currency option)

What PRII means

For factored securities, interest and principal are often paid on the same date. PRII was created to announce both in a single event: the interest part like an INTR and the principal part like a PRED, with the previous and next factors.

In ISO 20022, PRII is in the event type list of seev.031 up to version 001.09 and is absent from version 001.10 onwards, including 001.15 and 001.16 (checked in the ISO 20022 model). Market practice moved the same way: the ISITC US corporate actions market practice (version 8.0, December 2022) records the removal of PRII, with principal announced under PRED and interest under INTR.

Where it is still used in MT564, it is mandatory. ASX, whose ISO 20022 feed is based on seev.031.001.08, sets MAND and switches to CHOS when holders may choose a payment currency.

When you see it

  • In MT564 messages from account servicers and markets that still use the combined event, on asset-backed or amortising bonds.
  • If your counterparty sends seev.031 version 10 or later, expect two events (INTR and PRED) instead.

What to do next

  • No instruction for MAND. Reconcile the MT566 cash in two parts: interest (:19B::INTR) and principal (:19B::PRIN), and update the factor.
  • If you translate MT564 into ISO 20022 internally, map PRII to two events or agree a proprietary code; the seev.031 schema from version 10 does not accept it.

Where it appears in MT and ISO 20022

MT (ISO 15022)

  • MT564 sequence A (GENL), :22F::CAEV//PRII with :22F::CAMV//MAND or //CHOS
  • MT566 sequence A, :22F::CAEV//PRII; sequence D2, :19B::INTR and :19B::PRIN

MX (ISO 20022)

  • seev.031 CorpActnGnlInf/EvtTp/Cd = PRII only up to seev.031.001.09; not in the code list of seev.031.001.10 to .16
  • In current versions, announce the interest as INTR and the principal as PRED, or use EvtTp/Prtry if both parties agree