Mid Term Note Monetization
Instrument & Service Description:
Maturity Period: MTNs have a maturity range between 1 to 10 years, differentiating them from short-term instruments (like commercial paper) and long-term instruments (such as bonds with maturities beyond 10 years).
Interest Payments: MTNs generally pay interest (coupons) periodically—usually semi-annually—at either a fixed rate or a variable rate, depending on the terms of the issuance.
Flexibility: Issuers have flexibility in structuring MTNs with various features, such as different maturities, interest rates, and denominations, which makes them attractive to different types of investors.
Issuance Program: MTNs are often issued under a continuous issuance program. This allows the issuer to issue notes periodically in smaller tranches rather than one large bond issuance, giving them the flexibility to meet financing needs as they arise.
Trading and Liquidity: MTNs can be traded in the secondary market, although their liquidity may vary depending on the issuer, market conditions, and the specific terms of the note.
Use of Proceeds: The funds raised through the sale of MTNs are often used for corporate funding, project finance, or other capital requirements
Benefits for Investors
Predictable Returns: Investors receive regular interest payments.
Diversification: MTNs allow investors to diversify their fixed-income portfolios with instruments of varying maturities and risk profiles
Lower Risk: Generally considered less risky than stocks, especially if issued by a strong corporation or government entity
Benefits for Issuers
Flexible Funding: Issuers can tailor MTN programs to their financing needs, issuing notes in various maturities and amounts.
Cost-Effective: MTNs can often be issued at a lower cost than other forms of debt financing like bonds or loans.
In the financial world, Mid-Term Notes are commonly used as a tool for both institutional and high-net-worth individual investors seeking secure, fixed-income returns over a medium time horizon.
Complete Non Recourse Monetization of Mid Term Note (MTN)
We offer 1 Monetization settlement methods:
1/ Bank SWIFT - We use the Bank SWIFT Network to have the Mid Term Note (MTN) delivered Bank to Bank using SWIFT MT799 followed by SWIFT MT760.
Ice Invest Capital Trading Monetization services are ideal for clients looking to Discount, Monetize, or create an immediate Non Recourse loan against a Mid Term Note (MTN) that they own. The Monetization process for Mid Term Note (MTN) issues Non Recourse funds to the Client shortly after the Mid Term Note (MTN) is delivered to the Monetizer. Please contact us concerning the terms of your MTN, your MTN issuer terms may affect the LTV.
Monetization LTV:
⦁ Mid Term Note (MTN) - 35% to 87% Non Recourse
Estimated Completion Time
⦁ 7 to 14 Days after all documents are signed and verified or 3 to 4 Days After Instrument Delivery on the SWIFT Networks.
⦁ Sometimes because of the size of Mid Term Notes (MTN) the Monetizer will give clients two options:
⦁ A one off 35-65% LTV Non Recourse Payment on delivery of the Mid Term Notes (MTN), OR
⦁ 3 Split Payments Totaling a 87% LTV over a 6 or 8 week period
Step 1
After execution of the monetization contract by both parties the Client will instruct his MTN Issuer to send SWIFT MT799 to the bank coordinates provided by the Monetizer.
Step 2
The Monetizers bank on receipt of the SWIFT MT799 from the clients Issuer, will reply with a SWIFT MT799.
Step 3
On receipt of the Monetizers bank SWIFT MT799 the Clients Issuing Bank will deliver the Mid Term Note (MTN) by SWIFT MT760 to the Monetizers bank.
Step 4:
Upon receipt, confirmation and delivery of the SWIFT MT760 the Monetizer will within maximum four (7) banking days grant a Non Recourse Loan for the LTV as agreed from its nominated bank to the Client.
Step 5
The Monetizer agrees to return the Mid Term Note (MTN) unencumbered fifteen (15) calendar days before the 1 year anniversary of the signed contract between the parties.
Examples
The Mid Term Note (MTN) is issued with a Value of: $100,000,000,000
The Mid Term Note (MTN) is Monetized Non Recourse at 87% LTV being: $87,000,000,000
The Client is paid $87,000,000,000
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