Definition of Note Issuance Facility (NIF)

revolving credit arrangement in the Euromarket, whereby the borrower issues short-term promissory notes (Euronotes) in its own name, generally with maturities of three to six months. A group of underwriting banks guarantees the availability of funds by agreeing to purchase any unsold notes at each rollover date, or by writing a standby line of credit. NIFs offer companies the flexibility of short-term financing, and give lenders an opportunity to meet credit needs of borrowers without being required to purchase any unsold notes. The revolving line of credit is often negotiated through a single bank that in turn sells participations to other members of the underwriting syndicate.