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Introduction

The process for setting up a medium term note (MTN) programme is set out in Practice Note: Setting up an MTN Programme—timeline of process.

This Practice Note focuses on the process for an issuance of notes (known as a drawdown) under an MTN programme (a programme) once the programme has been established.

Type of drawdown

A programme will usually provide for two types of drawdowns:

1. •

   a drawdown agreed by the issuer and a dealer (a dealer drawdown), and

2. •

   a drawdown agreed by the issuer and a group (or syndicate) of dealers (a syndicated drawdown)

In addition, a programme will usually allow additional dealers to accede to the programme, either as permanent members of the dealer panel or for the purposes of a single drawdown.

Notification to dealer(s)

The issuer notifies the dealer(s) that it intends to drawdown under the programme—this can be done by way of a term sheet or by way of an Initial Syndicate Communication.