Medium Term Note


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Medium Term Note

An unconventional bond note with a maturity period usually between five and 10 years continually offered through various brokers, rather than issued all at once like other bonds. Unlike most bonds, which are bought and sold on exchanges, MTNs are normally purchased through an MTN brokerage, which operates on a best effort basis and is under no obligation to sell a certain amount on behalf of the issuer. Unlike corporate bonds, MTNs are almost always marketed to institutions and high net-worth individuals and have few or no small and medium investors. Beyond that, they functions much like corporate bonds: unsecured, non-callable, with fixed coupons and investment grade ratings. MTNs have become a favorite form of fundraising for large corporations, government agencies, and sovereign states. This demand has led to more complex MTNs, with floating interest rates and maturity periods from nine months to 30 years or longer. See also: Euro medium term note.
References in periodicals archive ?
The medium term notes may be issued from time to time and may be denominated in a range of currencies listed on the Singapore Exchange Securities Limited and and listed on the Singapore Exchange Securities Limited or other stock exchanges.
3 billion Islamic Medium Term Notes Programme and MYR 180 million Redeemable Secured Junior Bonds on 2 December, 2013 in conjunction with the new project financing raised to part-finance the extension of the Duta-Ulu Kelang Expressway (refer to MARC's announcement on 20 September, 2013 and 21 November, 2013).

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