A Multicurrency Note Facilty is a credit facility that can be denominated in a variety of currencies. The facility allows the borrower to choose the preferred currency in each roll over period when the loan is refinanced, but it allows the lender to specify which currency the loan is supposed to be repaid in.
In terms of risk, multicurrency note facilities represent the riskiest option for the borrower. This is because the borrower assumes the foreign currency risk as the lender will decide the denomination that the loan will be repaid in. Needless to say, the lender will make this decision in terms that is most favorable to itself. The establishment of a multicurrency note facility is usually a sign that a REIT is about to make building acquisitions or major asset enhancements to existing properties.