Financing under REPO transactions

RCB Bank Ltd offers various short-term lending solutions under REPO transactions. REPO transactions may, in principle, be viewed as short-term loans secured by tradable securities. The mechanism for such transactions operates on the basis that, for the period of the loan, the securities that are being offered as collateral are "sold" to the Bank, with the client obliged to buy the securities back on a pre-agreed date. These transactions are regulated by internationally recognised standard contracts: Global Master Repurchase Agreement (ISMA GMRA). Once the term of the contract ends, it may be possible to rollover the REPO transaction.

REPO transactions are conducted in Euros, US dollars, Great Britain Pounds or Russian roubles (in accordance with the currency of the collateral) and cover a period of between two weeks and three months. Tradable securities issued by Russian and international listed companies and approved by the Bank may be offered as collateral for such transactions. The lending rate is set on a case-by-case basis, depending on the currency, term and quality of security and the size of the REPO transaction.