Note issuance facility

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Note issuance facility (NIF)

An agreement by which a syndicate of banks indicates a willingness to accept short-term notes from borrowers and resell these notes in the Eurocurrency markets.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Note Issuance Facility

An agreement by a syndicate of banks to buy short- and/or medium-term notes from an issuer in the event that it is unable to sell the notes on eurocurrency markets. This effectively provides credit for the issuer because, even if the issuer cannot place an issue, it will still be able to raise the funds it seeks. A note issuance facility thereby reduces the risk to an issuer of short- and medium-term debt securities.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
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By securitising future cash flows, companies were able to access financing over the medium term, generally through the issue of either floating-rate notes (FRNs) in the eurobond markets, or of note issuance facilities (NIFs) on the back of which short-term securities could later be issued if and when needed.
Specific products in the option-type instrument classification include option contracts, interest rate caps, interest rate floors, fixed rate loan commitments, note issuance facilities, and letters of credit.
Note Issuance Facilities. A note issuance facility is a financial tool used by a borrower to issue short-term securities in the Euromarkets.