Note Issuance Facility - NIF

AAA

DEFINITION of 'Note Issuance Facility - NIF'

A syndicate of commercial banks that have agreed to purchase any short to medium-term notes that a borrower is unable to sell in the eurocurrency market.

INVESTOPEDIA EXPLAINS 'Note Issuance Facility - NIF'

The NIF acts as an underwriter. Should the borrower be unable to sell all notes, the syndicate is obligated to purchase all the remaining notes from the borrower, essentially providing credit. Note issuance facilities are useful in reducing risk and costs for both the borrower and the lender.

RELATED TERMS
  1. Note

    A financial security that generally has a longer term than a ...
  2. Revolving Credit

    A line of credit where the customer pays a commitment fee and ...
  3. Syndicate

    A professional financial services group formed temporarily for ...
  4. Euro Medium Term Note - EMTN

    A flexible medium-term debt instrument that is issued and traded ...
  5. Club Deal

    A private equity buyout or the assumption of a controlling interest ...
  6. Eurocurrency

    Currency deposited by national governments or corporations in ...
Related Articles
  1. Brokerage Functions: Underwriting And ...
    Brokers

    Brokerage Functions: Underwriting And ...

  2. The Money Market
    Retirement

    The Money Market

  3. An Investor's Guide To Bank Stress-Testing
    Investing Basics

    An Investor's Guide To Bank Stress-Testing

  4. What is the difference between a state ...
    Credit & Loans

    What is the difference between a state ...

Hot Definitions
  1. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  2. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
  3. Accelerated Depreciation

    Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years ...
  4. Call Risk

    The risk, faced by a holder of a callable bond, that a bond issuer will take advantage of the callable bond feature and redeem ...
  5. Parity Price

    When the price of an asset is directly linked to another price. Examples of parity price are: 1. Convertibles - the price ...
  6. Earnings Multiplier

    An adjustment made to a company's P/E ratio that takes into account current interest rates. The earnings multiplier is used ...
Trading Center