Primus Guaranty Ltd. is set to buy approximately 3.2 million of its shares in a private transaction at the start of next month.

The company agreed to pay 70 cents per share for a total cost of around $2.2 million.

The block trade was carried out under the company's share and debt repurchase programme, which allows it to repurchase up to $25 million of its debt and equity from its available cash. All shares purchased under the programme will be retired.

"As we discussed during our recent third quarter earnings call, our company's primary focus now is on preserving capital and unlocking value for shareholders," said Thomas Jasper, CEO of Primus Guaranty Ltd.

"Today's share repurchase represents a very attractive use of capital and indicates the disciplined approach we intend to take to optimise shareholder value."