Marac Finance said its A-1+ rated Commercial Paper (CP) programme had been approved by the Reserve Bank as an acceptable security for the central bank's repurchase facility in its open market operations. "Marac is very pleased to have achieved the first Asset Backed Security in New Zealand to be approved under the Reserve Bank's Repo Facility," said Marac Finance CFO Alan Williams. " This approval will provide institutional investors with additional liquidity options which is key in the current market," Williams said. The RBNZ has indicated a 'haircut' when accepting these securities of 15%. Here is the full list of acceptable securities. * This article was first published earlier today in our daily subscription newsletter for the banking and finance industries. The email costs NZ$365 per annum and carries exclusive news and analysis for New Zealand banking and finance industry executives, regulators and investors. Sign up for a free trial here.
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