Issued by a non-financial enterprise to specific institutional investors in the inter-bank market, a PPN is circulated and transferred among these investors.  

PPN issuance: The financing tool is issued to specific institutional investors ("target investors") in the inter-bank market rather than the general public. Target investors describe institutional investors that have the power and willingness to invest in PPN, understand and can bear the related investment risks, and agree to regulation by NAFMII.

Increased term flexibility: The term of a PPN ranges from days to years. The issuer can design flexible terms based on its cash flow needs. Currently, the PPN on the market mostly have a term of three or five years. Some issuers opt for a shorter term of six months or one year.

Simplified registration and issuance procedures: By accepting the registration of a directional financing tool, NAFMII issues a Notice of Registration to the issuer and the registration remains valid for two years. With the valid term, the issuer can issue the tool in installments with the first completed within six months of registration. NAFMII only checks registration materials for completeness.

Registering issue volume as needed: As they are not publicly issued, private placement note are free from the 40 percent balance limit on public bonds, allowing issuers to register the issue volume based on their own needs.

No interval between issues: Unlike commercial paper and medium term note that are subject to a time interval between issuance and redemption, each installment of a PPN can be issued and redeemed at the same time. This enables the issuer to utilize funds seamlessly.

Simplified information disclosure: As the tool is issued to specific investors, the issuer is not required to disclose information on its business and financial performance.