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REPOs

Get the best value

for your funds

REPOs are when the Bank agrees to borrow funds against Treasury Bills or Bonds from a customer for a specified period of time for a mutually agreed rate of interest. 

The Treasury Bills or Treasury Bonds are assigned to you as collateral for your investment.

On maturity of the agreement, the investor benefits by being entitled to the principal plus the interest for the period which could either be reinvested or recalled. This is a risk free investment.

 

The Essentials

  • You will receive an attractive rate of return

  • No withholding tax

  • Easy to convert to money even before maturity as in discounting

  • Ability to use as a collateral

 

This is an agreement between the Commercial Bank and you as an investor, where the Commercial Bank agrees to borrow funds against Treasury Bills or Bonds from you for a specific period, at an agreed rate of interest. You will be assigned Treasury Bills or Bonds as collateral for your investment.

Since Treasury Bills and Bonds are backed by Government securities, they are considered to hold virtually zero default risk.

 

Types of Repo’s

  • Overnight Repo – Bank borrowing for a period of 1 day
  • Term Repo – Bank borrowing for a period exceeding 1 day

You can decide the period of the investment and upon the maturity of the agreement; you are entitled to the principal plus interest for the period. Treasury Bills at the end of the period can be either re invested or recalled.

 

Benefits Investing in REPOs

Liquidity – Repos provide the ability to invest cash overnight, making them a critical component in the effort to manage liquidity.

Yield Advantage – Repos generally provide additional yield as compared to traditional money market instruments.

Flexibility – the principal amount of repos can be adjusted up or down as fund cash flows dictate. 

Placing a REPO

You can visit a branch of your choice and discuss your requirement with an officer.

Please fill the relevant application form and hand it over to the branch. Remember to take your national identity card, driving license or passport. This is necessary for us to identify you.

If you are a Commercial Bank Online Banking customer, you can also send a request through COMBANK ONLINE.

Terms & Conditions apply
Please contact Treasury Department at +8802 9896048, 9896049 or +8802 9896046, 9896310 for the latest information and prevailing terms & conditions

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