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 Says:
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:
Club Deal
Euro Medium Term Note - EMTN
Eurocurrency
Negotiated Underwriting
Note
Revolving Credit
Syndicate
Underwriting |