Note Issuance Facility (NIF)
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
- Short Term Financing-Bank Overdraft Facility
- Finance: Bankers’ Acceptance Facility(B/A)
- Short Term Financing:Inventory Financing (Part 2)
- Medium Term Financing- Hire Purchase and Leasing Facility (Part 1)
- Finance: Trust Receipt Facility
- Hypothecation
- Bridging & End-Financing
July 17, 2007
Posted in: Sources of Financing, Treasury Terms

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