ING Commercial Banking in Russia is a top 10 player in fixed income/equity REPO on MICEX (based on MICEX ratings).
REPO involves sale and forward purchase of stock against cash. Counterparties negotiate the interest rate paid on the cash amount for length of the deal. Lending deal involves loan of the stock to the borrower against collateral at an agreed haircut and interest rate.
REPO can be used as an instrument of liquidity management. In case of equity lending the primary motivation for the borrower is to acquire a specific security to cover a market short position. The rate paid by the borrower depends on demand for the security. The owner/lender of the security retains economic ownership thereof. That means receiving substitute payments on all dividends and coupons that occur during the loan tenor, and retaining the right to all corporate actions.
Equity lending allows to gain additional fee on equity holdings. It also provides client with access to liquidity at rates that are lower than market rate, which means lower costs of borrowing and lower portfolio maintenance cost.
ING Commercial Banking in Russia capabilities:
- Fixed income/equity MICEX REPO for flexible RUB financing.
- USD, EUR, RUB and cross currency OTC REPO.
- Flexible solutions for covering equity short positions.
Benefits of using ING REPO services:
- Competitive pricing.
As a top-tier global financial institution ING can offer highly competitive rates across the majority of developed and emerging markets.
- High level of reliability.
Based on long-standing expertise on global and local markets ING Bank maintains A2/A+/A+ credit ratings confirmed by international rating agencies.
- Integrated securities finance platform.
ING offers complementary products such as fixed income REPO, equity REPO, equity lending, fixed income and equity REPO brokerage services on MICEX.
- Global platform.
ING Group offers fixed income/equity REPO and securities lending emerging and developed markets globally.
- Personalised client service.