Repo

Operational efficiency

Repos (repurchase agreements) are one of the most widely used securities financing instruments and a key source of capital market liquidity. BNP Paribas offers a full suite of repo services to suit your financing needs.

Our Repo offer

BNP Paribas is a long-established repo market player, providing access to global and local coverage in more than 30 countries through three repo trading desks in London, Paris and Hong Kong.

We can answer your liquidity needs through efficient and customised (e.g. tenor, size…) programmes. Benefit from the quality of our service offer, as well as added peace of mind as you face a G-SIB bank with top-notch risk management ethos and a strong balance sheet.

Our repo solutions are fully integrated with our custody services, which allows us to provide a full range of back-office outsourcing services (e.g. dividend, corporate action, SFTR reporting…), allowing you to effectively access repos’ benefits without the associated operational burden.

We operate on a cross-asset basis, offering repos against a wide range of assets (e.g. Equities, Government Bonds, Credit, Securitised Products…).

Our repo offer covers three programmes:

Repos in the most traditional sense of the term, i.e. the sale of a security against cash with a subsequent repurchase of the security on a given future date. Repos can be conducted on fixed income securities, equities and other instruments.

Our standard Repo offer provides the following advantages:

  • Assets in custody as a source of additional liquidity
  • High flexibility with in depth tailoring of the programme
  • Wide pool of eligible collateral
  • Potentially cheaper funding linked to its secured nature (as opposed to unsecured funding)
  • The safety of working with a sound partner with a solid balance sheet

Our Committed Repo Facility solution differs from our standard repo offer. We provide a credit line to our clients from which they can draw through an unlimited number of repo transactions with a maturity up to the maturity of the facility.

Our Committed Repo facility service allows for:

  • An additional layer of flexibility, you can consume part or all of the facility
  • A more stable financing process as you secure a credit line on which you can rely at any time, provided the maturity or the maximum size have not been reached
  • Stronger support as the facility can be renegotiated and extended to suit your evolving needs

BNP Paribas is the first bank to have traded sustainable repos in Europe, Asia and Americas and is working with industry groups to establish this new market.

We offer sustainable repos in two ways:

  • Green Repos: where the proceeds of the repo are applied to finance or refinance, in part or in full, new or existing Green & Social Projects. This ESG mechanism is designed to support sustainable financing.
  • Sustainability Linked Repo: where the characteristics of the repo can change negatively (e.g. payment of penalties) or positively (e.g. margin adjustments) depending on the achievement of Sustainability Performance Targets (SPTs). The results from the companies’ ESG efforts are aggregated and compared on a regular basis with SPTs by an independent party. This ESG mechanism is designed to incentivise ESG performance.

Whether you would like to opt for one or the other, BNP Paribas has built strong expertise in the sustainable repo field and is fully committed to accompany clients with their needs.