MTN Programmes/Drawdown Prospectus
Medium term note programmes enable the issuance of debt instruments which give issuers the flexibility of issuing a variety of notes on a continuous basis.
Issuers have the benefit of structuring medium term notes to satisfy their own needs and to issue them when they wish.
There are two Recognised Investment Exchanges (RIEs) in the UK which admit medium term note programmes to trading:
- the London Stock Exchange (LSE) operated the Regulated Market, and
- the LSE Professional Securities Market (PSM).
- PLUS Markets also operate three markets: PLUS Listed; PLUS Quoted and PLUS Traded.
Under the EU prospectus directive, the issuer must publish a prospectus in relation to medium term notes being admitted to trading on a EU regulated market and/or if they are being offered to the public
When a prospectus is not required under the prospectus directive and the issuer is seeking admission to a listed but unregulated market, eg the PSM, listing particulars must be prepared in line with the relevant listing rules.
A company that wants to issue Debt under a medium term note programme, must first have had a base prospectus/listing particulars reviewed and approved by the UKLA.
Once the base prospectus/listing particulars has been approved by the UKLA, the issuer will be able to issue notes from the medium term note programme for a period of 12 months, providing the maximum amount issuable under the programme has not been reached.
To be eligible for admission to the Official List, MTN programme issuers must meet the requirements set out in LR 2 and LR 17.