Metal Tiger plc (LON:MTR), the London Stock Exchange AIM listed investor in natural resource opportunities, has announced that it has executed an International Swaps and Derivatives Association agreement and Credit Support Annex with the same global investment bank with which it has the equity derivative financing arrangements subject to the Umbrella Agreement, which was announced on the 17th December 2019.
The execution of the ISDA agreement will allow Metal Tiger to obtain access to over-the-counter derivatives including but not limited to equities, commodities and FX contracts.
The CSA essentially helps to stipulate the terms and conditions under which each party is required to post collateral to each other.
Michael McNeilly, the Chief Executive Officer of Metal Tiger commented: “The execution of these agreements expands the scope of the natural resources investment opportunities available to Metal Tiger and could also be applied to help Metal Tiger hedge currency risk. It has been put in place to allow the possibility of a more sophisticated investment approach going forward depending, as always, on the balance of the portfolio and the resources available to Metal Tiger at the time. Metal Tiger will update appropriate internal strategy and policy documents to help govern any OTC contracts entered into using this agreement to ensure appropriate risk management.”
