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Medium Term Notes

MEDIUM TERM NOTES

Medium term notes (MTNs) are bonds issued under MTN programmes. There are two principle types of MTN programmes. "Domestic" MTNs are usually listed on the local stock exchange and settlement takes place in the local securities clearing center. Domestic MTN's are also documented under the local jurisdiction. Euro Medium Term Notes (EMTNs) are issued in the euro markets and are usually listed on either the London or Luxembourg Stock Exchange and settlement takes place via either Euroclear or Cedel. EMTN's are usually documented under English law.

The differences between domestic and Euro MTN-programme are following:

 

Domestic MTN

EMTN-programme

Coupon

Free

Free

Maturity

Free

Free

Currency

Local/Euro

Multicurrency option

Issuance method

Free

Free

Listing

Local Exchange

Luxemburgo, London etc

Settlement and clearing

Local center

Euroclear, Cedel

Documentation

Local jurisdiction

English law

 

Generally MTN's have the following features:

The maturity and other issue terms can be structured to suit specific investor requirements. This enables Issuers to respond quickly to "windows of opportunity" in the market.

MTNs are usually offered continuously through a dealer group rather than issued in one tranche underwritten by a syndicate of banks.

Issued tranches can be listed or non-listed

Issued bonds can have a variety of different structures (maturity, coupon, listing etc.)

Issuing method can be syndicated or via a single dealer.

An MTN-programme offers issuers tremendous flexibility in the raising of medium and longer-term funds. The ability to offer investor's tailor-made solutions with respect to, for instance, issue size, coupon structures, or maturity preferences allows issuers to achieve lower funding costs. The issuer also has flexibility over the amount of notes to be issued at any one time and MTN documentation makes issuance in smaller amounts economically viable.

Efficient use of the EMTN market increasingly requires that issuers have an international long-term investment grade credit rating (BBB-/Baa3 upwards). As a result the EMTN market is not suited to those borrowers with relatively small borrowing requirements, whose funding needs can be met in the domestic market where not all investors are yet rating sensitive and name recognition is still important. For such issuers a domestic MTN is the better alternative.

Mtn's private placement contract

Bank Coordinates

BUYER'S BANKING COORDINATES:
  • Ref:
  • Transaction Code:
  • Seller's Code:
  • Buyer's Code:
  • Bank Name:
  • Address:
  • Account Name:
  • Account Number / iban # :
  • Bank officer:
  • SWIFT / bic code:
  • ABA ROUTING # [ FED WIRE #]:
  • Telex:
  • dtc #:
  • Sidel:
  • Euroclear #:
  • Bloomberg:
  • Bank Tel. #:
  • Bank Fax #:
  • E-mail:
  • Sorting Code/uk/

Buyer's Security House & SECURITY HOUSE BANK COORDINATES:
  • SECURITY HOUSE NAME:
  • SECCURITY HOUSE ADDRESS:
  • SECURITY HOUSE BANK:
  • Name:
  • Address:
  • Account Name:
  • Account Number / iban #:
  • Officer TRUSTEE:
  • Account Executive:
MANAGER/DIRECTOR:
  • dtc #:
  • Bloomberg:
  • Euroclear # :
  • Sidel:
  • Telex:
  • Swift / Bic Code:
  • Telephone:
  • Facsimile:
  • Correspondent Bank:
  • E-mail:
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