Medium-Term Notes (MTN)

Corporate debt securities typically issued in the form of uncollateralised promissory note loans placed by way of tap issues. It is continuously offered to investors over a period of time by an agent of the issuer. Investors can select from maturity bands of 6 months to 1 year, more than 1 year to 18 months, more than 18 months to 2 years, etc., typically extending to 10-year maturities. It obligates the issuer to pay the holder a specified sum at specified intervals and to pay the principle of the loan at maturity Each individual issue is backed by an MTN programme (which provides the legal framework for all individual issues). Medium-term notes offer maximum flexibility in terms of structure and market timing.