Cross Currency Swap

Cross currency swap is an agreement to exchange interest payments in one currency for those denominated in another currency.

• Suitable for institutions with loans denominated in one currency, while its revenues are denominated in a different currency.
  
  For example, you have a USD floating loan but has only SGD revenues to service your USD loans. Hence, you are exposed to both FX and interest rate risks.

• A defensive and conservative hedging strategy for institutions who wish to protect against both FX and interest rate risks
• Simple and straightforward hedging solution
• Can be customised to meet your requirements:
• There are both principal and interest exchanges in the respective currencies
• No upfront fees payable
• Available in different currency pairs (for example, USD/SGD, USD/JPY, EUR/GSD, etc) and available to hedge against different floating rate market indices (such as SGD Swap Offer Rate, USD Libor, EURIBOR, etc)

To apply, all corporations have to set up a Swap Line with the Bank. The Swap Line states the maximum amount and tenor that you may contract at any one time.