Highlights

An agreement is reached when there is a commitment by the seller or dealer to buy a security from the purchaser or customer at a specified price at a specified future date. When this agreement is made from the customer’s perspective, it is referred to as a Reverse Repo. Commercial Bank assists in such transactions to facilitate trade. 

• An agreement between a seller and a purchaser.
  
• It is used as a hedge to offset price fluctuations.
  
• Provides liquidity and yield advantages.

Eligibility

Corporate Bodies incorporated in Sri Lanka which maintains a Savings or Current Account at Commercial Bank can purchase Reverse REPOs.

Benefits

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

Yield Advantage – Reverse Repos generally provides you with a yield advantage as compared to traditional overdraft facilities etc.

Placing reverse REPO

Please submit the documents mentioned under “Documents required”, to the nearest branch or to your Relationship Manager to obtain the Reverse REPO facility.

Once the approval is granted, you should forward the duly completed Master Repurchase Agreement and Board Resolution.

Upon receipt of the above mentioned documents you can enter into a Reverse Repurchase agreement after agreeing to an interest rate with the Treasury Dealers Department.  

Required documents

• Letter of request.
• Set of the recent financial statements.
• Duly completed Board Resolution.
• Duly Signed Master Repurchase Agreement.

Terms & conditions apply

Product information and terms & conditions are subject to change from time to time. Therefore, it is advisable to contact the branch nearest to you for the latest information and prevailing terms & conditions.