Cross Currency Swap

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

• Suitable for corporate who has loan denominated in one currency, while its revenues are denominated in a different currency. Hence, there is FX mismatches between the currency of his loan and the currency of his revenues.
• For example, you have a USD floating loan but has only SGD revenues to service your USD loans. Hence, you are exposures to both FX and interest rate risks.
• A defensive and conservative hedging strategy for hedgers who wish to protect against both the FX and interest rate risks.
• Simple and straightforward hedging solution.
• Can be customized to meet your requirements:
  
  
  1. Your floating rate loan in one currency can be converted to a floating or fixed rate obligation in a different currency.
  2. It can also be convert your fixed rate loan in one currency into a floating or fixed rate obligation in a different currency.
  3. There are both principal and interest exchanges in the respective currencies.
  4. No upfront fees payable.
  5. 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).
  6. Tenure of cross currency swap ranges from 1 year to 15 years.

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.