Euro Medium Term note (EMTN)

Euro Medium Term Notes are a variant in EUR of MTNs which represents a type of securities initially created in the United States of America. MTNs or EMTNs are debt instruments issued by companies. As their name suggests, they generally have a maturity between the one of Commercial Paper (below one year) and the one of bonds but there are EMTNs with a maturity of 10 years.

NOTES are instruments that represent a debt :

  • at short, medium, long or very long term (maturities between one month and 100 years);
  • denominated in euro or in foreign currencies for which the European Central Bank publishes reference rates against the euro on a daily basis;
  • with a fixed or floating interest rate or a yield linked to an index or a formula;
  • with a repayment amount that is fixed, variable or linked to a formula or an index;
  • issued within the framework of the Euro Medium Term Notes Programme of the Kingdom of Belgium;
  • placed by dealers who are designated by issuance;
  • dematerialised and held in an accounting system to which CLEARSTREAM and EUROCLEAR have access. This debt may also take the form of a registered entry in the Ledger of the public debt.
  • may be issued in tranches that, together, make up a series.

TO WHOM ARE THE NOTES ADDRESSED?

NOTES are mainly designed for professional investors. Individual investors may also acquire NOTES, if they wish, through dealers designated to this effect. Moreover, NOTES may be issued tailor-made in accordance with the investors' needs.

WHAT IS THE ROLE OF PRIMARY AND RECOGNIZED DEALERS IN RESPECT OF THE NOTES?

The dealers responsible for the placement of NOTES are designated by issue. These are not necessarily primary dealers or recognized dealers, even though the latter will probably place most of the NOTES.