Document background
The Bond Repurchase Agreement serves as a fundamental instrument in Nigerian financial markets, enabling participants to access short-term financing while using bonds as collateral. This document is essential for financial institutions engaging in repurchase transactions under Nigerian law and must comply with Central Bank of Nigeria (CBN) guidelines and Securities and Exchange Commission (SEC) regulations. It is typically used when one party seeks to obtain short-term funding while the other aims to earn returns on excess liquidity. The agreement incorporates market standard provisions for pricing, margin maintenance, and default scenarios, while addressing specific requirements of Nigerian financial regulations. The document structure follows international best practices while accommodating local market conventions and regulatory requirements.
