Repurchase Agreement

A Repurchase Agreement, also known as a repo, currency repo, RP, or sale and repurchase agreement, is the sale of securities by the ECHMB together with an agreement to buy back the said securities at a later date.  ECHMB’s repos are backed by investment grade debt instruments issued such as Private Corporation or government instruments. Tenors include, but are not limited to 90, 180, 365 or 730 days. Investments start at XCD 5,000.

ECHMB Repurchase Agreement are issued by public prospectus utilizing the platform of the Eastern Caribbean Securities Exchange (ECSE). The ECSE is also contracted as the Bank’s Transfer and Paying Agent. Interest is usually payable semiannual. The ownership of the instrument can be transferred on the secondary market (ECSE); this means that ECHMB’s Corporate Papers, are highly liquid.

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