EMTN

A ‘Market Participation Note’ (or MPN) EMTN is a debt security, usually with 100% capital protection, which pays a gain at maturity proportional to the positive performance of an underlying asset (share, basket of shares or index). This gain is also known as a ‘participation’ in the performance.  

In return for capital protection, participation in the positive performance of the underlying is often only partial. At final maturity, investors receive their capital plus a bonus if the underlying has performed positively since its initial observation level.

In the event of a negative performance of the underlying, the capital invested is repaid in full at final maturity (capital protection).

A “Range Accrual” EMTN is a debt instrument that allows the issuer to pay to the investor a predetermined interest rate at a predetermined date as long as the predetermined index is within a predetermined range.

In other words, on a daily basis check, if the index reference is within the range, the predefined interest rate is paid on the predefined coupon date.

The invested capital is repaid in full at final maturity date (capital protection).