An EMTN stands for Euro Medium Term Note. The definition of a Euro Medium Term Note – EMTN is that an EMTN is a flexible medium-term debt security/instrument that is issued, and therefore traded – outside of the US/Canada. An EMTN also requires a fixed-dollar payment. In contrast to other bonds or notes, a EMTN is issued for a term of five years or less, i.e. the maturity of the notes mature within five years. Euro medium term notes are also offered continuously, instead of all at one time such as what traditional bonds offer. EMTNs are also issued in Europe and clear and settle with such institutions as Euroclear and Clearstream (Euroclear System (“Euroclear”), in Brussels and Clearstream Banking, société anonyme (“Clearstream”), in Luxembourg.)
Euro Medium Term Note issuers maintains a standardized document, which is referred to as a ‘program’ or ‘EMTN Programme’ that can be transferred across all issues and has a great proportion of sales through a syndication of pre-selected buyers.
Euro medium-term note Programme (EMTN Programs)
Many inquiry as to what exactly is euro medium-term note (“EMTN”) programme. EMTN programme are intended primarily for securities Europe. Many large American entities and others that often need capital create MTN and EMTN programs.
ISIN Code Securities Identification Number for EMTNs and MTNs
What are ISINs codes, and how are they obtained? ISINs and common codes are security identification numbers, 12 digits and for EMTNs a specific type of ISIN code is applied for. An ISIN organization can be applied to for the ISIN number. An ISIN (International Security Identification Number) and the common code are required and are the standard international securities identification code for Eurobonds and EMTN notes which are to be cleared through Euroclear and Clearstream. The agent of the EMTN program would normally obtain the ISIN numbers and common codes for the relevant EMTN notes on behalf of the issuer. By comparison, CUSIP (Committee on Uniform Security Identification Procedures) numbers are required for securities which are to be cleared through the U.S. depository, The Depository Trust Company (“DTC”), which is a 9 digit code.