Hint mode is switched on Switch off

Loan Participation Note (LPN)

Category — Bond Types
A Loan Participation Note (LPN) is a debt security, as one of the possible structures for issuing Eurobonds it allows investors to acquire shares in a loan or loan portfolio issued to a borrower. The loan is provided by the issuer of the notes - a specially created company (SPV, Special Purpose Vehicle). Unlike credit notes, an LPN credit event or default is tied to that particular loan, and not to the borrower’s credit events. LPN holders participate on a pro rata basis in receiving interest and principal payments on the loan. In Russian practice, as a rule, all eurobonds issued by corporate and municipal issuers, assume an LPN structure.

A series of LPN notes is often issued within the framework of the Medium-Term Notes program (MTN), which allows for the reduction of associated costs. There is one basic prospectus of the program written, and for each tranche Final Terms are issued - small issue documents containing the main parameters of the issue.

International investment banks sign loan participation agreements with local banks and also offer them LPN as a short-term investment option, thereby meeting the needs of local borrowers and increasing local banks’ loan income when one or more banks are lenders to the borrower.
Terms from the same category

Find Any Data on Any Bond in Just One Click

Full data on over 800,000 bonds and stocks worldwide

Powerful bond screener

Ratings from the top 3 global ratings agencies, plus over 70 local ones

Over 300 pricing sources from the OTC market and world stock exchanges

Get access

— Are you looking for the complete & verified bond data?

— We have everything you need:

full data on over 700 000 bonds, stocks & ETFs; powerful bond screener; over 350 pricing sources among stock exchanges & OTC market; ratings & financial reports; user-friendly interface; available anywhere via Website, Excel Add-in and Mobile app.



You will have detailed descriptive & pricing data for 650K bonds, 76K stocks, 8K ETFs
Get full access to the platform from any device & via Cbonds app
Enhance your portfolio management with Cbonds Excel Add-in
Build yield maps, make chart comparison within a click
Don't wait any longer — start using Cbonds today! Register
Registration is required to get access.