NovaPay Credit LLC, which this year placed its debut and two more public issues of interest-bearing bonds with a nominal volume of UAH 100 million each and announced three more such issues, plans to launch some of them on the secondary market using repurchase agreements, financial director of the parent company NovaPay Ihor Prykhodko has said

"We have created a design for repurchase agreements. That is, when you purchase a bond and immediately fix the repurchase date and its price. Thanks to this mechanism, the client can decide for how long to invest money," he said in an interview with Interfax-Ukraine.

According to him, the company chose public issues because it counts on a large number of clients - both existing ones and those that it will attract, and a large circulation of bonds.

"We expect that the client base will be very differentiated, and the average ticket will be small. You, as a client, will choose the term yourself, and depending on this you will receive profitability. That is, you can buy a bond for a month, two, three or 12 months," Prykhodko predicts.

According to him, this is a global difference from the classic issue of corporate bonds, when it comes, for example, to offers or changes in coupon income, therefore, in the debut issue, interest payments are provided at the end of the circulation period.

"This design of the issue gave us the opportunity, after technical placement, to enter the secondary market and offer just such a mechanism for clients: for any period and according to the period for receiving profitability. This is convenient and attractive for the client, because profitability correlates with the banking market," the financial director explained.

He added that this makes it possible to quickly respond to market changes and change profitability at any time depending on the terms, and cited as an example banks with their line of deposit products structured by terms of placement with the ability to change the rate depending on market conditions.

Prykhodko also said that the company deliberately abandoned underwriting, since the bond issue is not aimed at institutional investors, but at individuals and legal entities, clients of Nova Poshta and clients of NovaPay.

He clarified that the ability to perform such transactions in the mobile application will be later, but for now all processes are being worked out manually by the financial products sales division to make sure that everything works perfectly.

Prykhodko added that NovaPay Credit has several partners and several different sales technologies that it is testing: for example, sales through the exchange are being tested with one company, and off-exchange sales with another.