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 are 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:
- Your floating rate loan in one currency can be converted to a floating or fixed rate obligation in a different currency.
- It can also be convert your fixed rate loan in one currency into a floating or fixed rate obligation in a different currency.
- 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).
- 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.
- Contact Us
- Visit us at:
United Overseas Bank Limited
80 Raffles Place
5th Storey UOB Plaza 1
Uniplus Account Rates
|Remaining Balance Above S$100,000||0.4750|