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

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