Financing Against Pledge of Investment Portfolio

When you invest in precious metals and securities, including purchase of mutual funds’ shares or bonds issued by our bank, you acquire additional opportunities — to receive financing against pledge of financial instruments, precious metals and available funds constituting your investment portfolio.

The funds received can be used for purchasing securities and/or unallocated precious metals or for some other purposes. The main condition for obtaining financing is the presence of assets that the bank is ready to accept as collateral in the investment portfolio. Funding is available in USD, EUR, RUB, GBP and CHF.

  1. If you need financing for purchasing securities and/or unallocated precious metals, you just need to submit an order for purchasing desired amount of investment asset. You will be automatically granted a loan equal to the difference between the amount required for purchasing the investment asset and funds available in cash account.
  2. If you wish to receive additional funds against pledge of investment portfolio, you need to submit an order for funds transfer from cash account to the current account. You will be automatically granted the financing equal to the difference between the payment amount and funds available in cash account.

Conditions of granting financing secured by different investment assets differ both in terms of the maximum amount of funds available to be granted and also the interest rate applicable. The limit of available financing depends on investment assets’ category, the issuer’s country, credit rating (in case of bonds), and the issuing company’s capitalized value (in case of stocks).

Financing conditions

Investment assets’ category Available loan limit*
Government bonds, national central banks and supranational organizations bonds Up to 96% of the market value
Corporate bonds Up to 75% of the market value
Bonds issued by ABLV Bank (except subordinated bonds) 90% of the market value
Stocks Up to 70% of the market value
Mutual funds managed by
ABLV Asset Management, IPAS
Up to 80% of the market value
Precious metals’ account balance 70% of the market value
Cash account balance 90% of the cash account balance equivalent in the financing currency

* The stated amount of available financing is for information only. Current information on the amounts of financing available to be granted against pledge of investment portfolio is provided in our rates and charges.

Compared to other financing options, financing against pledge of investment portfolio can be granted faster — we provide it on the same day.