Corporate action events
RHDI: Intermediate Securities Distribution
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RHDI distributes intermediate securities, such as subscription rights, that give holders the right to take part in a later event. It is the first of two events: holders receive the rights automatically, then decide what to do with them in the follow-on event, typically EXRI.
- Code
- RHDI
- Usually announced as
- MAND
What RHDI means
Many elective events are split in two. First the issuer distributes an intermediate security on its own ISIN: subscription rights, open offer rights or similar. RHDI is that distribution. It is mandatory: each holder on the record date is credited with the eligible quantity times the ratio (:92a::ADEX), with no choice and no payment.
The second event is where holders act. For subscription rights it is EXRI, in which holders exercise, sell or let the rights lapse. MT564 says which kind of follow-on event the rights belong to with :22F::RHDI in sequence D, for example //EXRI (subscription rights), //PRIO (open offer rights), //BONU, //DVOP or //SOFF. :22F::SELL//RENO or //NREN tells you whether the rights can be sold.
When you see it
- In an MT564 with
MAND, a record date, an ex date (:98a::XDTE) and a payment date for the credit of the rights, followed by a separate notification for the EXRI event on the rights ISIN, linked through sequence A1. - RHDI vs RHTS: RHTS packs the distribution and the subscription into one event; RHDI plus EXRI split them. RHDI vs BONU: a bonus issue credits the final shares, not a right to acquire them.
What to do next
- No instruction on the RHDI itself. Reconcile the credit of the rights on the MT566 and set up the rights ISIN in static data.
- Check market claims: if the underlying shares were traded cum and settled after the record date, the rights must be claimed or transformed.
- Prepare for the follow-on event: collect elections for the EXRI before its deadline, which is often short.
Where it appears in MT and ISO 20022
MT (ISO 15022)
- MT564 sequence A (GENL),
:22F::CAEV//RHDIwith:22F::CAMV//MAND - MT564 sequence D,
:22F::RHDI//EXRI(or//PRIO,//BONUand other types) and:22F::SELL//RENOor//NREN; sequence E1,:92a::ADEX - MT566 sequence A,
:22F::CAEV//RHDI