Note Issuance Facility

Note Issuance Facility

Note Issuance Facility (NIF) is an underwriting agreement/arrangement in the Eurocurrency market under which borrowers place short/medium term (one to six months) notes via a syndicate of prime/commercial banks, and the borrowers' issue is backed by the commitment of the syndicate banks to purchase any paper which the borrowers may be unable to sell[1][2]. Since the facility/guarantee itself is contingent, the creation of NIF does not give rise to an entry in the financial account and will be treated as an off-balance sheet item in the guarantor books. When the underwriting institution is requested to make funds available, it will acquire the actual asset (notes) and will be recorded in the financial account.

References

  1. ^ OECD - Glossary http://stats.oecd.org/glossary/detail.asp?ID=1850
  2. ^ Reserve Bank of India http://rbidocs.rbi.org.in/rdocs/content/pdfs/87359.pdf

Wikimedia Foundation. 2010.

Игры ⚽ Поможем написать реферат

Look at other dictionaries:

  • note issuance facility — ( NIF) An agreement by which a syndicate of banks indicates a willingness to accept short term notes from borrowers and resell these notes in the Eurocurrency markets. Bloomberg Financial Dictionary * * * note issuance facility note issuance… …   Financial and business terms

  • note issuance facility — NIF; = note purchase facility A means of enabling short term borrowers in the eurocurrency markets to issue euronotes, with maturities of less than one year, when the need arises rather than having to arrange a separate issue of euronotes each… …   Accounting dictionary

  • note issuance facility — NIF; note purchase facility A means of enabling short term borrowers in the eurocurrency markets to issue euronotes, with maturities of less than one year, when the need arises rather than having to arrange a separate issue of euronotes each time …   Big dictionary of business and management

  • 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. The NIF acts as an underwriter. Should the borrower be unable to sell all notes, the… …   Investment dictionary

  • note issuance facility — /nəυt ɪʃuəns fəˌsɪlɪti/ noun a credit facility where a company obtains a loan underwritten by banks and can issue a series of short term eurocurrency notes to replace others which have expired. Abbreviation NIF …   Dictionary of banking and finance

  • note purchase facility — note issuance facility …   Accounting dictionary

  • Note Issuance Facility (NIF) — Fazilität, die die Liquiditätsbeschaffung über die revolvierende Platzierung von kurzfristigen Schuldtiteln (⇡ Notes) ermöglicht. Diese werden im ⇡ Tenderverfahren am Markt untergebracht. Anders: ⇡ Revolving Underwriting Facility (RUF). Bei einer …   Lexikon der Economics

  • Note issuance facility (NIF) — An agreement by which a syndicate of banks indicates a willingness to accept short term notes from borrowers and resell these notes in the Eurocurrency markets. The New York Times Financial Glossary …   Financial and business terms

  • Standby Note Issuance Facility - SNIF — A type of credit facility, often a bank, that accepts an arrangement that finances projects via secondary obligations. SNIFs will guarantee payment to the lender if the borrower defaults. In this way, SNIFs ultimately act as a form of insurance… …   Investment dictionary

  • facility — fa‧cil‧i‧ty [fəˈsɪlti] noun facilities PLURALFORM 1. facilities [plural] PROPERTY special buildings or equipment that have been provided for a particular use, such as sports activities, shopping or travelling: • The hotel s leisure facilities… …   Financial and business terms

Share the article and excerpts

Direct link
… Do a right-click on the link above
and select “Copy Link”