Medium Term Notes for Nomura Group

Financial Engineering and Structured Products (FESP) department provides solutions for the issuers of Medium Term Notes programmes and the optimisation of the data and settlement flows between the issuer and investors. FESP has extensive experience in servicing all forms of structured products and in the related documentation, clearing systems and information technology requirements.

Medium Term Notes (MTN) are mainly issued in the euromarkets, on the European stock exchanges and are in many cases eligible for settlement in either Euroclear or Clearstream. MTN are usually documented under English law.

Generally, MTN have the following features:

• Issued tranches can be listed or unlisted.
• Issued bonds can have a variety of different structures (maturity, coupon, listing, early redemption, etc.).
• Issuing method can be syndicated or via a single dealer.
• The maturity and other issue terms can be structured to suit specific investor requirements. This enables issuers to respond quickly to “windows of opportunity” in the market. 
• MTN are usually offered continuously through a dealer group rather than issued in one tranche underwritten by a syndicate of banks.

The ability to offer investors tailor-made solutions with respect to, for instance, issue size, coupon structures, or maturity preferences allows issuers to achieve lower funding costs. The issuer also has flexibility over the amount of notes to be issued at any one time and MTN documentation makes issuance in smaller amounts viable.

NBL has registered a EUR 1 billion MTN programme with the Luxembourg Stock Exchange. NBL also acts as the issuing agent for other Nomura MTN programmes such as Nomura Multi Issuer USD 57 billion MTN programme, which is guaranteed by Nomura Holdings, Inc. and Nomura Securities Co., Ltd.