medium-term note


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Medium-term note (MTN)

A corporate debt instrument that is continuously offered to investors over a period of time by an agent of the issuer. Investors can select from maturity bands of: 9 months to 1 year, more than 1 year to 18 months, more than 18 months to 2 years, etc., up to 30 years.

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.

medium-term note (MTN)

A corporate debt security offered intermittently or continuously by an agent of the issuer. Medium-term notes are issued under the SEC's Rule 415. Despite being called notes, these debt securities generally offer a wide range of maturities.
References in periodicals archive ?
....Senior Unsecured Medium-Term Note Program Rating, Affirmed (P)B2
....NSR Short Term Medium-Term Note Program (Domestic Currency), Placed on Review for Downgrade, currently (P)P-1.za
The notes, issued under medium-term note programme, will accrue interest at a fixed annual rate of 17.50 percent.
(ICTSI) is planning to sell $75 million worth of medium-term notes as capital expenditure to establish four new terminals in Africa and South America.
India's IDBI Bank Limited (532235.BO) (IDBIBANK.NS) (IDBK.NS) may consider increasing the size of its ongoing medium-term note programme to USD2.5bn from USD1.5bn, Dow Jones has reported, citing a senior executive of the bank.
Summary: Standard & Poor's Ratings Services said today that it assigned its 'AA' long-term senior unsecured debt rating to the Emirate of Abu Dhabi's (AA/Stable/A-1+) upcoming $10 billion global medium-term note program.
State Bank of India (SBI) (SBIN.NS) (500112.BO) (OTC: SBKJY), India's largest lender by assets, has said that it has doubled its overseas borrowing limit under its medium-term note programme.
Global Banking News-11 June 2010-IBK established AUD2bn in medium-term note programme(C)2010 ENPublishing - http://www.enpublishing.co.uk
In a stock exchange filing, the Malaysian financial group has said that the tenure of the proposed medium-term note programme will be six years from the date of the issuance of the first paper.
28 October 2011 -- Moody's said it gave backed (P)A2 and (P)A3 long-term senior unsecured and subordinate MTN ratings to Luxembourg-based Societe Europeenne de Banque SA's (SEB) EUR70bn (USD99.2bn) euro medium-term note (EMTN) programme, backed by Italy's Intesa Sanpaolo (BIT:ISP).
The withdrawal affected SCIB's Baa2/P-2 foreign-currency deposit ratings, (P)Baa2/(P)P-3 foreign-currency senior unsecured medium-term note programme ratings, (P)Baa3/(P)P-3 foreign-currency subordinated medium-term note programme ratings and D bank financial strength rating (BFSR).
In particular, the agency withdrew the (P)A2 senior subordinated medium-term note programme rating on Daiwa International Finance (Cayman) Ltd and (P)A3 junior subordinated medium-term note programme rating on Daiwa PB Limited.