Tender Panel

Financing method used in sale of promissory notes (Euronotes) through a Revolving Underwriting Facility (RUF). A syndicate, consisting of up to 15 to 20 commercial banks and investment banks, is authorized by a borrower (or the borrower's agent) to solicit bids on a Best Effort basis for project financing. The panel acts as a selling agent for the banks arranging a credit facility. The tender panel sale allows placement of Euronotes with a large number of investors seeking medium-term (five to seven years) paper. It also separates the originating bank from the banks actually purchasing the notes, thereby spreading the credit risk among a large number of participants. The originating bank's participation in the offering is small, often as little as 10% of the total financing. See also Multicurrency Note Facility; Multiple Options Funding Facility; Note Issuance Facility; Prime Underwriting Facility; Standby Note Issuance Facility; Transferable Underwriting Facility.