Programs are placed between short and medium term debt and are most similar to revolving credit lines. As such they enable issuers to take advantage of market conditions that best favour their needs and current cash flow situation.
Additionally, programs are a convenient cash flow management tool as they allow quick access to funds.
Flexibility and portfolio diversification are also important reasons for listing programs. Investors can chose from a wide range of programs, differing in timing, industry and sector. Although originally conceived as a medium-term instrument, programs are becoming increasingly used in various maturity dates, offering even further diversification.
The UKLA usually lists MTN Programs under its fast track regime, thus enabling first comments to be provided within 4 working days, with further comments available within 2 days.