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Definition: Euro Medium Term Note - EMTN
A medium term note is a debt note which is generally paid back in 5 to 10 years. They can be issued on fixed or floating coupon. When these medium term notes are issued outside Canada and US, they are termed as "Euro medium term note". A standing income security issued by a program arranged by underwriter in the Euromarkets by a company or sovereign entity is Emtn.
EMTN are issued directly into the market and unlike bond issue, they are offered continuously and require fixed dollar payments. It makes entry into the foreign market quite easy.
While issuing EMTN, the issuer maintains a program (standardized document) that is transferred across issues. MTNs can be non- callable (fixed maturity date) or can have put or call option trigger. It can be fixed rate, floating rate, amortizing or collateralized or can be issued in range of maturities and currencies. Financing via EMTN gives the investor a flexibility of fund gathering in type, form and time consideration.
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