Print |
Back

Terms and conditions of REPO deals

We offer financing possibilities through REPO transactions1 (government or corporate bonds) for the issuers from:

  • European Union, except Greece, under request - Spain, Italy, Portugal;
  • Organisation for Economic Cooperation and Development (OECD), except for Chile, Mexico, and Turkey, under request - Spain, Italy, Portugal;
  • Russia, Kazakhstan, Azerbaijan, under request - Belarus.

Issue and transaction currencies: EUR, USD.
Minimum amount of the bonds issue: 50 mln. base currency.

Government bonds, standard term and conditions: Bond Residual Maturity (in years)**
Rating2 1-5 5-10 >10*
Haircut3 Margin Call4 Close Out5 Haircut Margin Call Close Out Haircut Margin Call Close Out
A- and higher 7% 5% 3% 8% 6% 4% 10% 7% 4%
from BBB- to BBB+ 15% 10% 7% 20% 15% 10% 25% 20% 15%
from BB- to BB+ 20% 15% 10% 25% 20% 15% 30% 25% 20%
B+/B 30% 25% 15% 35% 30% 25% 40% 35% 30%
B- 40% 30% 20% 45% 35% 30% 50% 40% 35%
other ratings under request

*perpetual and subordinated securities under request.
** securities with residual maturity more than 20 years under request.

Corporate bonds, standard term and conditions: Bond Residual Maturity (in years)**
Rating2 1-5 5-10 >10*
Haircut3 Margin Call4 Close Out5 Haircut Margin Call Close Out Haircut Margin Call Close Out
A- and higher 10% 7% 5% 10% 7% 5% 15% 10% 7%
from BBB- to BBB+ 25% 20% 15% 25% 20% 15% 30% 25% 20%
from BB- to BB+ 30% 20% 15% 35% 25% 20% 35% 25% 20%
B+/B 40% 30% 20% 40% 30% 25% 45% 35% 30%
B- 45% 35% 30% 50% 40% 35% 55% 45% 40%
other ratings under request

*perpetual and subordinated securities under request.
** securities with residual maturity more than 20 years under request.
*** excluding securities, which issuers are included in list of sanctions.

1 The data below is of indicative nature, and the Bank has a right to change unilaterally the financing terms of any financial instrument by specifying them in a separate message to a customer and refuse a customer concluding a REPO transaction without giving reasons.

2 In compliance with Standard & Poor’s or corresponding ratings of rating agencies.

3 Margin or difference between the actual market value of a bond and the amount of a loan, reaching which the customer must deposit more funds or close the REPO transaction prematurely.

4 Critical limit between the market value of a bond and the amount of a granted loan.

5 Percentage ratio between the market value of a bond and the amount of a granted loan, reaching which the REPO transaction is terminated.

Revers Repo rates

Reverse Repo rates depend on the total amount of the level of customer’s invested funds and the securities rating.

Rating2 Rates for investments till 100 000 USD Rates for investments from 100 000 USD till 500 000 USD Rates for investments higher than 500 000 USD
Bonds
A- and higher 1.50% + Libor 1.25% + Libor 1.00% + Libor
From BB- to A- 3.00% + Libor 2.75% + Libor 2.50% + Libor
From B- to ВВ- 3.50% + Libor 3.25% + Libor 3.00% + Libor
Stocks
6.00% + Libor 5.00% + Libor 4.00% + Libor

For additional information please contact Norvik Banka’s Brokerage Division by phone +37167011561 or e-mail broker@norvik.eu.