Note Issuance facility is merely a method of financing that involves repeat issues of a short term debt instrument to the most competitive bidder through auctions.
- When combined with a Revolving Underwriting Facility (RUF i.e. an underwriting facility which is extended in every round of fund-raising),the issue will devolve on the underwriter,if the bids from investors are above the cut-off rate.
- this financing mechanism is also known as RUF/NIF
The advantage is that the borrowing company can access funds long-term at short-term rates. For example,a 3 year underwriting facility for 90 day paper means that the borrower may tap the market up to twelve times in three years

FCCA,CA(MIA)with more than 26 years of post-qualifying working experiences. Previous working stints with one of the big accounting four,Regional GFC & Group Treasurer in a group of Malaysian and Group CFO in Singapore public listed concern.Also author to another very popular free educational accounting cum finance blog:http://basiccollegeaccounting.com under the branding of College Accounting Coach.
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