term for a part-transfer
of a large sum of money
, when it is transferred in slices. (Tranche
is the French for 'slice
'.) This is often the case with major funding arrangements or issues where the sums involved are too large for the organizations or markets to be able to handle them in one go.
In tranche funding, a company is supplied with funding in pre-arranged instalments, subject to review of its progress in using previous tranches.
When the International Monetary Fund grant a loan, the first 25% is referred to as the reserve tranche (formerly known as the gold tranche).
Sometimes deprecated as a jargon term when used too freely just to mean 'slice' or 'portion' or 'instalment', but it has its place in technical language.