Terms of REPO transactions

We offer the funding option through REPO transactions (government or corporate bonds) for issuers from:

  • the European Union, except for Greece, upon request - from Spain, Italy, Portugal;
  • Organisation for Economic Co-operation and Development (OECD), except for Chile, Mexico, Argentina and Turkey, upon request - from Spain, Italy, Portugal;
  • Russia, Kazakhstan, Azerbaijan, upon request - from Belarus.

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

Government bonds Remaining maturity of bonds (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 above 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%

* Perpetual securities - on request.
** Securities with more than 20 years left to maturity - on request.

Corporate bonds Remaining maturity of bonds (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 above 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%

* Perpetual and subordinated securities - on request.
** Securities with more than 20 years left to maturity (incl. perpetual) – on request.
*** Исключая ценные бумаги, которые внесены в список санкций.
As to the rated bonds not included in the table or bonds with no rating, the rate is established based on the agreement with the Bank.

1. The below data are indicative and Bank reserves the right to change the terms of the funding unilaterally for any financial instrument by informing the client thereof separately as well as refuse a REPO transaction without stating the reasons.
2. In compliance with Standard & Poor’s ratings or equivalent ratings assigned by other rating agencies.
3. Margin or difference between the actual market value of the bond and amount of the loan upon reaching of which the client is obliged to invest more funds or close the REPO transaction early.
4. Margin call between the market value of the bond and granted amount of the loan.
5. The percentage ratio between the market value of the bond and granted amount of the loan reaching which the REPO transaction is terminated.

 

Interest rates for reverse REPO transactions

The interest rates for reverse REPO transactions depend on the total amount of the funds invested by the client and rating of the securities.

Rating Rates for investments up to USD 100 000 Rates for investments from USD 100 000 to USD 500 000 Rates for investments over USD 500 000
Bonds
A- and above 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
Shares
  6.00% + Libor 5.00% + Libor 4.00% + Libor

For more information, contact the Brokerage Division of PNB Banka over the telephone +37167011561 or e-mail broker@pnbbanka.eu.