A Repurchase Agreement, also known as a Repo, is a form of short-term borrowing involving the sale of securities with the agreement to buy them back at a specific interest rate at a specific date. The ECHMB’s Repos are backed by the ECCU’s government instruments which are custodied at the Eastern Caribbean Central Securities Depository Limited. Tenors include 365 days with a minimum investment amount of XCD 5,000.
ECHMB’s Repos are issued by private prospectus with Eastern Caribbean Stock Exchange acting as the Bank’s Registrar, Transfer and Paying Agent. Interest is usually payable semiannually.
Benefits to Investor:
Competitive Interest Rate
Protection of Principal
No Interest Penalty on Early Redemption