AMERICAS
United States · NYSE, Nasdaq
Canada · Toronto (TSX)
Brazil · B3
Mexico · BMV
SECURITIES FINANCE
Securities-Backed Financing
Electron provides securities-backed financing as the balance-sheet lender and contractual counterparty, underwriting and managing each facility against eligible listed securities.
Over 20 years of lending experience
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Enquiries from US$500,000.
Indicative Financing Terms
The indicative terms below relate to our standard repo facilities. Any non-title transfer arrangement requires separate approval and agreed terms.
| Facility parameter | Indicative terms |
|---|---|
| Minimum financing | US$500,000 |
| Advance rates / LTV | 60%–75% Subject to collateral and approval. |
| Tenor | 12–60 months |
| Fixed annual interest | 3%–6% p.a. |
| Administration fees | 1%–3% On actual funds drawn. |
| Funding timeline | 5–10 working days Subject to documentation and agreed closing requirements. |
Indicative terms depend on the securities and proposed facility. Enquiries from US$500,000 with no fixed upper limit, subject to the asset, structure and overall merits of the transaction.
Eligible Collateral and Global Markets
Eligible collateral includes listed shares, ETFs, bonds, REITs and other listed securities held individually or within a portfolio. The exchange list shows markets where listed securities have served as collateral for completed financing transactions.
17 markets across six regions
- Americas
- Europe
- Asia
- Oceania
- Middle East
- Africa
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EUROPE
United Kingdom · London (LSE)
France · Euronext
Netherlands · Euronext
Germany · Xetra
Switzerland · SIX
ASIA
Hong Kong · HKEX
Japan · Tokyo (TSE)
Singapore · SGX
South Korea · KRX
OCEANIA
Australia · ASX
New Zealand · NZX
MIDDLE EAST
United Arab Emirates
Abu Dhabi (ADX) · Dubai (DFM)
AFRICA
South Africa
Johannesburg (JSE)
Your exchange isn’t listed? Contact Electron to discuss your holding and financing requirement.
For an Initial Assessment
To assess the proposed collateral and financing requirements, we require the information below. You can begin with a brief outline; supporting documents can follow the initial discussion.
- The holding
- Security name, ticker and exchange; shares offered and approximate value; current custodian.
- The borrower
- Proposed borrower and shareholder; country of residence or incorporation; any restrictions, pledges or insider/control position.
- The requirement
- Financing amount and currency, preferred term and purpose.
- Supporting statement
- A recent brokerage or custody statement confirming the holder and relevant holdings. Unrelated positions may be redacted.
A completed application form and current brokerage statement are required before we open your file for formal assessment.
Our Securities-Backed Financing Structures
Our securities-backed financing is primarily structured through repurchase agreements (repo). Non-title transfer arrangements may be considered for selected transactions, subject to approval and agreed documentation.
Repurchase agreement (repo)
A repo is a financing transaction in which securities are sold for cash, with an agreement to repurchase securities at a future date and an agreed price.
It provides liquidity today while preserving an agreed exposure to the value of the holding.
Non-title transfer (NTT)
NTT financing uses securities as collateral without transferring ownership to the lender at the start of the facility.
An institutional custodian holds the shares in an account in the borrower’s name under the agreed collateral arrangements.
Non-recourse financing is provided under agreed terms. Any non-title transfer arrangement requires specific approval and depends on the market, custodian and proposed facility.
Understanding a Securities Margin Call
For repo facilities, a margin call asks you to restore collateral cover when the average share price over three consecutive exchange trading days falls below the agreed threshold.
Initial call level: 80% of the initial financing amount per share, subject to agreed terms
Step 1 of 3
Written notice
Electron sends written notice of the shortfall, the required top-up and the deadline.
Step 2 of 3
Five exchange trading days to complete
The period starts when you receive the notice. Complete the top-up within five trading days on the relevant exchange.
Step 3 of 3 · Within the response window
Top up or terminate
Provide cash or approved securities, or terminate on the agreed non-recourse terms. On termination, you retain the loan proceeds and the lender retains the securities.
Electron may require a cash top-up. After a completed top-up, the threshold resets to the three-day average used to calculate the shortfall. The agreement sets the applicable margin terms and non-recourse exceptions.
View the worked exampleHide the worked example
Closing averageUS$1.00
Initial financingUS$0.70
Call thresholdUS$0.56
Your securities holding has an agreed closing value of US$1.00 per unit. At a 70% advance rate, you receive US$0.70 per unit in financing. At an 80% call level, a call is triggered if the three-trading-day average price falls below US$0.56 per unit.
Hypothetical prices used for illustration only.
From Enquiry to Funding
Electron structures, underwrites, funds and manages securities-backed facilities tailored to each client’s requirements.
The steps below describe our standard repo process. Where a non-title transfer arrangement is approved, its custody, pricing and settlement terms are set out in the agreed documents.
Application and supporting statement
Once we receive your completed application form and a current brokerage statement, we can open your file for review.
Individual assessment
We assess market liquidity, concentration, collateral structure and jurisdiction.
Indicative terms
Indicative terms are provided within 24–48 hours, subject to receipt of the required information.
Documents and checks
Once indicative terms are accepted, we complete identity and ownership checks and send you the transaction documents for signature. The documents identify Electron or the wholly owned subsidiary providing the facility. Securities are transferred after the documents have been signed.
Share transfer and initial advance
Securities are delivered to the designated institutional account. Any initial advance provided for in the agreement is paid on the day of delivery and deducted at final settlement.
Closing valuation
The pricing period starts on the exchange trading day after the securities are received and posted to the designated account. The financing amount uses the average of Bloomberg-reported last sale prices over three consecutive exchange trading days, multiplied by the share quantity and agreed advance rate.
Closing statement
Before closing, we issue a statement showing the valuation, gross financing amount, agreed fees, any initial advance already paid and net balance payable. It also confirms the closing and maturity dates and the first interest payment date.
Final settlement
On the agreed closing date, the financing amount less any initial advance and agreed fees is wired to the nominated bank account.
Indicative completion: 5–10 working days, subject to completed documentation, receipt and verification of the securities, exchange trading days and the agreed closing conditions.
Securities Finance Questions
Can I borrow against one listed company?
Yes, a single-stock enquiry can be assessed. We review trading liquidity, concentration, free float and any ownership restrictions.
Will I retain the upside in my shares?
Yes, you retain the agreed exposure to increases or decreases in share value. Ownership, dividends and voting rights follow the facility documents.
Are personal guarantees required?
No, our securities facilities are non-recourse and do not require personal or corporate repayment guarantees.
What happens to cash dividends?
In a repo facility, cash dividends normally reduce the interest you owe. Any balance goes towards future interest and then the amount due at the end of the loan. Treatment can vary with the collateral and agreed facility terms.
You may lose the securities provided if repayment or collateral requirements are not met. Non-recourse exceptions, ownership and return rights follow the agreed documents.