CDH Reverse Repo

 This is an agreement where a client sells Treasury or Reserve Bank of Malawi Bill  to CDH with a simultaneous undertaking to buy it back at an agreed price and period. In other words CDH is extending a loan to a client using his/her investment, TB or RBM Bill as security.

Features

  • CDH buys your TB/RBM Bill for a given period in exchange for cash 

  • The client has the opportunity to buy it back from CDH after the agreed period expires

  • Maximum Reverse Repo amount obtainable is up to 80% of the client's Repo investment with CDH or face value of his/her TB or    RBM Bill

  • The applicable rate is negotiable and varies according to market conditions. Currently the rate is 2% above bank rate which translates to 27%.

  • The minimum Reverse Repo amount is K 200,000.00

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  • An arrangement fee of 1% flat is applicable, subject to a minimum of K 5,000.00

Benefits

  • Avails cash immediately for operations.

  • Leaves your investment with CDH intact as it is just a short term sale.

  • Competitively  priced as interest rate is lower than that of other financial institution

  • No additional collateral required

  • No legal costs 

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  • No hidden costs

Who can borrow under Reverse Repo?

  • Companies/Organizations

  • Non-Governmental Organizations

  • Banks and Non-bank financial institutions

  • Clubs and Association

  • Individuals

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Those having Repo investment with CDH or those holding Treasury or RBM bills can borrow from Continental Discount House Limited

How can you get Reverse Repo funds CDH?

  • A customer contacts CDH to agree on the period of the Reverse Repo  the amount, interest rate applicable, and the fees payable.

  • A customer completes an application form

  • A customer signs facility letter

  • CDH confirms receipt of your facility letter together with either a TB or RBM bill and issues a cheque in your favour.  

  • CDH sends the customer a deal confirmation

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  • CDH sends periodic statements to keep the customer updated.

How can you repay the Reverse Repo?

  • A customer transfers the earmarked funds to CDH via transfer instructions to the customer's bank

  • A customer deposits the funds on-line into CDH back account

  • CDH sends back the TB or RBM Bill

  • A customer can also use his/her investment with CDH to liquidate the Reverse repo.

Why use CDH Reverse Repo?

  • Ready cash to address cash flow problems

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  • Money is no longer tied up in securities

  • Business operations continue uninterrupted

  • Lower interest rates compared to bank loans or overdraft

  • Seamless and speedy processing

  • No rigorous credit assessment

 

Please contact our Dealers on the following numbers

+265 (0)1 821 913 / (0)1 822 840 / (0)8 835 992 / (0)8 874 170
 should you require additional information.

Copyright ©2001 Continental Discount House Limited. All Rights Reserved.