Medium Term Notes (MTN)

  • Medium Term Notes (”MTN”) is medium term debt with maturity ranging from 3 to 5 years
  • MTNs were introduced as an alternative to short-term financing in the commercial paper market and long-term borrowing in the corporate bond market. Although they share many similar features with long-term corporate bonds, they differ in their primary distribution process.
  • MTN can be issued with fixed coupon rate or floating coupon rate
  • MTNs are issued based on conventional or Islamic principles
  • Types of MTN :

    – Fixed maturity date (non callable); or

    – Can be bought back/repay before maturity date (buy back).

  • MTN is offered through private placement that can provide flexibility in structure and documentation to the Issuer and the Investor.

Promissory Notes

     Short term notes issued by a company in need of < 1 year financing.  

Repurchase Agreement (REPO)

     Definition : An arrangement by which the seller of an asset (ex: stocks, bonds) agrees, at the time of the sale, to buy the asset back at a specific price and, typically, on a given date.