Repo Agreement

Repo Agreement

The Repo is a form of borrowing in which the client sells the allowances (EUAs or EUAAs) to AitherCO2 and agrees to buy them back at a predetermined date.


Advantages:
  • The Repo can be faster and cheaper than bank financing
  • It is risk free since the conditions are established in advance
  • It can be insured through a clearing house

Aim:
  • The Repo agreement is generally used to increase short-term working capital without taking on price risk, to better conditions than standard bank loans