LTN Bonds

Many companies issue long term notes, or LTNs, sometimes with a 25 year or even 50 year maturity date. LTNs are a popular throughout the world, both in Europe, Asia and South American, such as in Brazil. It is popular way to raise debt capital over a long period of time. Typically LTNs have a smaller interest payment that short term notes as they are considered less risky. The riskier the notes the higher the interest rate is a general theory.

Many Brazil, Chinese or US LTN long term notes require an ISIN number. Applying and obtaining an ISIN code for an LTN is something MFN can assist with.

It is also common for many companies that issue LTNs to place them in common depository with Euroclear or Clearstream in Europe. If this is the case, many companies will apply to receive an XS ISIN code that Euroclear and Clearstream allocate. In the United States, such LTN securities may get deposited in DTCC (or DTC) as DTC is the recognized deposiroty for the western hemisphere. If the LTN is to be placed with DTCC typically a CUSIP number will be assigned to the long term notes and will most likely be required before being accepted by DTC.

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