Multicurrency Note Facility
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Definition of 'Multicurrency Note Facility'
A credit facility that finances short- to medium-term Euro notes. Multicurrency note facilities are denominated in many currencies. This type of credit facility allows the borrower to choose which currency to use in each rollover period when the loan is refinanced, but allows the lender to choose the currency the loan is to be repaid in.
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Investopedia explains 'Multicurrency Note Facility'
Multicurrency note facilities are the riskiest lending avenue for borrowers. This is because the borrower assumes the foreign-currency risk in the transaction, since the lender decides which currency to receive repayment in, typically at a predetermined exchange rate. The loans from these facilities usually reprice about every six months.
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